GCC, S.A.B. de C.V. Just Recorded A 6.6% EPS Beat: Here's What Analysts Are Forecasting Next

As you might know, GCC, S.A.B. de C.V. (BMV:GCC) recently reported its yearly numbers. 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$0.91 per share, modestly greater than expected. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on GCC. de after the latest results.

View our latest analysis for GCC. de

After the latest results, the eight analysts covering GCC. de are now predicting revenues of US$1.44b in 2024. If met, this would reflect a modest 5.4% improvement in revenue compared to the last 12 months. Per-share earnings are expected to increase 8.0% to US$0.96. In the lead-up to this report, the analysts had been modelling revenues of US$1.43b and earnings per share (EPS) of US$0.91 in 2024. So the consensus seems to have become somewhat more optimistic on GCC. de's earnings potential following these results.

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 5.9% to Mex$228. 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. There are some variant perceptions on GCC. de, with the most bullish analyst valuing it at Mex$250 and the most bearish at Mex$200 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that GCC. de's revenue growth is expected to slow, with the forecast 5.4% annualised growth rate until the end of 2024 being well below the historical 8.6% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 4.2% annually. Even after the forecast slowdown in growth, it seems obvious that GCC. de is also expected to grow 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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

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. We have estimates - from multiple GCC. de analysts - going out to 2026, and you can see them free on our platform here.

You can also see our analysis of GCC. de's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.