Fibra Danhos Just Missed EPS By 17%: Here's What Analysts Think Will Happen Next

Shareholders might have noticed that Fibra Danhos (BMV:DANHOS13) filed its quarterly result this time last week. The early response was not positive, with shares down 5.5% to Mex$22.83 in the past week. Revenues were in line with forecasts, at Mex$1.3b, although statutory earnings per share came in 17% below what the analysts expected, at Mex$0.52 per share. 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.

View our latest analysis for Fibra Danhos

After the latest results, the eight analysts covering Fibra Danhos are now predicting revenues of Mex$5.61b in 2022. If met, this would reflect a decent 15% improvement in sales compared to the last 12 months. Per-share earnings are expected to climb 18% to Mex$2.32. Before this earnings report, the analysts had been forecasting revenues of Mex$5.43b and earnings per share (EPS) of Mex$2.26 in 2022. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.

Despite these upgrades,the analysts have not made any major changes to their price target of Mex$26.60, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. 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. The most optimistic Fibra Danhos analyst has a price target of Mex$30.00 per share, while the most pessimistic values it at Mex$21.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Fibra Danhos' rate of growth is expected to accelerate meaningfully, with the forecast 20% annualised revenue growth to the end of 2022 noticeably faster than its historical growth of 3.8% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 5.3% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Fibra Danhos is expected to grow much faster than its 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 Fibra Danhos following these results. Happily, they also upgraded their revenue estimates, and are forecasting revenues to grow faster than the wider industry. The consensus price target held steady at Mex$26.60, 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. We have estimates - from multiple Fibra Danhos analysts - going out to 2024, and you can see them free on our platform here.

Before you take the next step you should know about the 1 warning sign for Fibra Danhos that we have uncovered.

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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.