Stock Analysis

Quálitas Controladora, S.A.B. de C.V. (BMV:Q) Yearly Results Just Came Out: Here's What Analysts Are Forecasting For This Year

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It's been a good week for Quálitas Controladora, S.A.B. de C.V. (BMV:Q) shareholders, because the company has just released its latest annual results, and the shares gained 4.8% to Mex$174. Overall the results were a little better than the analysts were expecting, with revenues beating forecasts by 4.6%to hit Mex$53b. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Quálitas Controladora. de after the latest results.

Check out our latest analysis for Quálitas Controladora. de

BMV:Q * Earnings and Revenue Growth January 28th 2024

Following the latest results, Quálitas Controladora. de's five analysts are now forecasting revenues of Mex$57.1b in 2024. This would be a meaningful 8.4% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to jump 48% to Mex$14.17. Before this earnings report, the analysts had been forecasting revenues of Mex$57.1b and earnings per share (EPS) of Mex$14.74 in 2024. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

The consensus price target held steady at Mex$166, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Quálitas Controladora. de at Mex$200 per share, while the most bearish prices it at Mex$134. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 8.4% growth on an annualised basis. That is in line with its 7.4% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 9.2% per year. It's clear that while Quálitas Controladora. de's revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on Quálitas Controladora. de. Long-term earnings power is much more important than next year's profits. We have forecasts for Quálitas Controladora. de going out to 2026, and you can see them free on our platform here.

Plus, you should also learn about the 1 warning sign we've spotted with Quálitas Controladora. de .

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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.