Results: GCC, S.A.B. de C.V. Beat Earnings Expectations And Analysts Now Have New Forecasts

Investors in GCC, S.A.B. de C.V. (BMV:GCC) had a good week, as its shares rose 6.8% to close at Mex$160 following the release of its third-quarter results. GCC. de missed revenue estimates by 2.1%, coming in atUS$398m, although statutory earnings per share (EPS) of US$0.33 beat expectations, coming in 5.6% ahead of analyst estimates. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for GCC. de

Following the latest results, GCC. de's nine analysts are now forecasting revenues of US$1.48b in 2025. This would be a satisfactory 7.6% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to shrink 8.1% to US$0.90 in the same period. In the lead-up to this report, the analysts had been modelling revenues of US$1.47b and earnings per share (EPS) of US$0.89 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

The analysts reconfirmed their price target of Mex$237, showing that the business is executing well and in line with expectations. 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 GCC. de at Mex$268 per share, while the most bearish prices it at Mex$199. So we wouldn't be assigning too much credibility to analyst price targets in this case, because there are clearly some widely different views on what kind of performance this business can generate. 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 6.1% annualised growth rate until the end of 2025 being well below the historical 9.8% 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 0.8% annually. So it's pretty clear that, while GCC. de's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

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

We also provide an overview of the GCC. de Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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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.