This Just In: Analysts Are Boosting Their Industrias CH, S. A. B. de C. V. (BMV:ICHB) Outlook for This Year

Industrias CH, S. A. B. de C. V. (BMV:ICHB) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with the analysts modelling a real improvement in business performance.

Following the upgrade, the current consensus from Industrias CH S. A. B. de C. V's four analysts is for revenues of Mex$47b in 2021 which - if met - would reflect an okay 5.9% increase on its sales over the past 12 months. Statutory earnings per share are supposed to plunge 24% to Mex$5.63 in the same period. Prior to this update, the analysts had been forecasting revenues of Mex$47b and earnings per share (EPS) of Mex$5.63 in 2021. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business.

Check out our latest analysis for Industrias CH S. A. B. de C. V

It will come as no surprise then, to learn that the consensus price target is largely unchanged at Mex$86.25. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Industrias CH S. A. B. de C. V at Mex$129 per share, while the most bearish prices it at Mex$116. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or that the analysts have a clear 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. The period to the end of 2021 brings more of the same, according to the analysts, with revenue forecast to display 7.9% growth on an annualised basis. That is in line with its 7.3% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues fall 5.0% per year. So not only is Industrias CH S. A. B. de C. V expected to maintain its revenue growth despite the wider downturn, it's also forecast to grow faster than the industry as a whole.

The Bottom Line

The most obvious conclusion from this consensus update is that there's been no major change in the business' prospects in recent times, with analysts holding earnings per share steady, in line with previous estimates. On the plus side, analysts made no changes to their revenue estimates - and they expect sales to perform better than the wider market. The lack of change in the price target is puzzling, but with a serious upgrade to this year's earnings expectations, it might be time to take another look at Industrias CH S. A. B. de C. V.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Industrias CH S. A. B. de C. V analysts - going out to 2025, and you can see them free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.

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This article by Simply Wall St is general in nature. 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.
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