Analysts Have Made A Financial Statement On Grupo Bimbo, S.A.B. de C.V.'s (BMV:BIMBOA) Second-Quarter Report

Investors in Grupo Bimbo, S.A.B. de C.V. (BMV:BIMBOA) had a good week, as its shares rose 3.9% to close at Mex$67.58 following the release of its quarterly results. It was an okay result overall, with revenues coming in at Mex$98b, roughly what the analysts had been expecting. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for Grupo Bimbo. de

After the latest results, the ten analysts covering Grupo Bimbo. de are now predicting revenues of Mex$409.7b in 2024. If met, this would reflect a modest 4.5% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to swell 13% to Mex$3.40. Before this earnings report, the analysts had been forecasting revenues of Mex$407.1b and earnings per share (EPS) of Mex$3.41 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

The analysts reconfirmed their price target of Mex$77.73, showing that the business is executing well and in line with expectations. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Grupo Bimbo. de at Mex$96.00 per share, while the most bearish prices it at Mex$65.00. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Grupo Bimbo. de shareholders.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting Grupo Bimbo. de's growth to accelerate, with the forecast 9.2% annualised growth to the end of 2024 ranking favourably alongside historical growth of 7.6% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 5.0% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Grupo Bimbo. de to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at Mex$77.73, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Grupo Bimbo. de analysts - going out to 2026, and you can see them free on our platform here.

Even so, be aware that Grupo Bimbo. de is showing 2 warning signs in our investment analysis , you should know about...

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com