Megacable Holdings, S. A. B. de C. V. Just Missed EPS By 51%: Here's What Analysts Think Will Happen Next

Last week, you might have seen that Megacable Holdings, S. A. B. de C. V. (BMV:MEGACPO) released its full-year result to the market. The early response was not positive, with shares down 2.1% to Mex$43.89 in the past week. Statutory earnings per share fell badly short of expectations, coming in at Mex$1.50, some 51% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at Mex$33b. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Megacable Holdings S. A. B. de C. V

Taking into account the latest results, the most recent consensus for Megacable Holdings S. A. B. de C. V from ten analysts is for revenues of Mex$35.7b in 2025. If met, it would imply a solid 8.7% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to soar 44% to Mex$4.03. In the lead-up to this report, the analysts had been modelling revenues of Mex$35.5b and earnings per share (EPS) of Mex$3.88 in 2025. So the consensus seems to have become somewhat more optimistic on Megacable Holdings S. A. B. de C. V's earnings potential following these results.

There's been no major changes to the consensus price target of Mex$55.43, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. 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 Megacable Holdings S. A. B. de C. V, with the most bullish analyst valuing it at Mex$84.00 and the most bearish at Mex$39.10 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We can infer from the latest estimates that forecasts expect a continuation of Megacable Holdings S. A. B. de C. V'shistorical trends, as the 8.7% annualised revenue growth to the end of 2025 is roughly in line with the 9.0% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 3.9% annually. So it's pretty clear that Megacable Holdings S. A. B. de C. V is forecast to grow substantially faster than its industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Megacable Holdings S. A. B. de C. V's earnings potential next year. 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Megacable Holdings S. A. B. de C. V going out to 2027, and you can see them free on our platform here.

Plus, you should also learn about the 1 warning sign we've spotted with Megacable Holdings S. A. B. de C. V .

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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.