Analysts Are Updating Their GCC, S.A.B. de C.V. (BMV:GCC) Estimates After Its Full-Year Results

Last week saw the newest annual earnings release from GCC, S.A.B. de C.V. (BMV:GCC), an important milestone in the company's journey to build a stronger business. The result was positive overall - although revenues of US$1.4b were in line with what the analysts predicted, GCC. de surprised by delivering a statutory profit of US$0.99 per share, modestly greater than expected. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for GCC. de

Taking into account the latest results, the consensus forecast from GCC. de's eight analysts is for revenues of US$1.41b in 2025. This reflects a modest 3.5% improvement in revenue compared to the last 12 months. Statutory per-share earnings are expected to be US$1.00, roughly flat on the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of US$1.43b and earnings per share (EPS) of US$0.89 in 2025. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the decent improvement in earnings per share expectations following these results.

The consensus price target was unchanged at Mex$242, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on GCC. de, with the most bullish analyst valuing it at Mex$289 and the most bearish at Mex$209 per share. We would probably assign less value to the analyst forecasts in this situation, because such a wide range of estimates could imply that the future of this business is difficult to value accurately. As a result it might not be a great idea to make decisions based on the consensus price target, which is after all just an average of this wide range of estimates.

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. We would highlight that GCC. de's revenue growth is expected to slow, with the forecast 3.5% annualised growth rate until the end of 2025 being well below the historical 9.7% p.a. growth over the last five years. Compare this with other companies in the same industry, which are forecast to see a revenue decline of 0.3% annually. So it's clear that despite the slowdown in growth, GCC. de is still expected to grow meaningfully faster than the wider 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 GCC. de following these results. On the plus side, they made no changes to their revenue estimates - and they expect it to perform better than the wider industry. The consensus price target held steady at Mex$242, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for GCC. de going out to 2027, and you can see them free on our platform here..

You should always think about risks though. Case in point, we've spotted 2 warning signs for GCC. de you should be aware of, and 1 of them is concerning.

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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.