CEMEX, S.A.B. de C.V. Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

It's been a good week for CEMEX, S.A.B. de C.V. (BMV:CEMEXCPO) shareholders, because the company has just released its latest second-quarter results, and the shares gained 8.9% to Mex$15.49. CEMEX. de reported US$4.1b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$0.022 beat expectations, being 10.0% higher than what the analysts expected. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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After the latest results, the 15 analysts covering CEMEX. de are now predicting revenues of US$16.3b in 2025. If met, this would reflect a satisfactory 3.8% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to surge 52% to US$0.093. In the lead-up to this report, the analysts had been modelling revenues of US$16.1b and earnings per share (EPS) of US$0.08 in 2025. Although the revenue estimates have not really changed, we can see there's been a nice increase in earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.

View our latest analysis for CEMEX. de

The consensus price target was unchanged at Mex$16.51, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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 CEMEX. de at Mex$22.95 per share, while the most bearish prices it at Mex$13.08. With such a wide range in price targets, analysts are almost certainly betting on widely divergent outcomes in the underlying business. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business.

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. It's clear from the latest estimates that CEMEX. de's rate of growth is expected to accelerate meaningfully, with the forecast 7.7% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 5.7% p.a. 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 1.9% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that CEMEX. de is expected to grow much faster than its industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards CEMEX. de following these results. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at Mex$16.51, 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. At Simply Wall St, we have a full range of analyst estimates for CEMEX. de going out to 2027, and you can see them free on our platform here..

It is also worth noting that we have found 1 warning sign for CEMEX. de that you need to take into consideration.

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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.