Stock Analysis

Earnings Update: El Puerto de Liverpool, S.A.B. de C.V. (BMV:LIVEPOLC-1) Just Reported Its Third-Quarter Results And Analysts Are Updating Their Forecasts

BMV:LIVEPOL C-1
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Shareholders might have noticed that El Puerto de Liverpool, S.A.B. de C.V. (BMV:LIVEPOLC-1) filed its quarterly result this time last week. The early response was not positive, with shares down 4.9% to Mex$107 in the past week. The result was positive overall - although revenues of Mex$46b were in line with what the analysts predicted, El Puerto de Liverpool. de surprised by delivering a statutory profit of Mex$3.29 per share, modestly greater than expected. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for El Puerto de Liverpool. de

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BMV:LIVEPOL C-1 Earnings and Revenue Growth October 25th 2024

Taking into account the latest results, the consensus forecast from El Puerto de Liverpool. de's twelve analysts is for revenues of Mex$228.9b in 2025. This reflects a solid 10% improvement in revenue compared to the last 12 months. Per-share earnings are expected to increase 3.2% to Mex$17.05. In the lead-up to this report, the analysts had been modelling revenues of Mex$228.4b and earnings per share (EPS) of Mex$17.14 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$145, showing that the business is executing well and in line with expectations. 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 El Puerto de Liverpool. de analyst has a price target of Mex$170 per share, while the most pessimistic values it at Mex$120. 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.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that El Puerto de Liverpool. de's revenue growth is expected to slow, with the forecast 8.1% annualised growth rate until the end of 2025 being well below the historical 11% 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 9.9% per year. Factoring in the forecast slowdown in growth, it seems obvious that El Puerto de Liverpool. de is also expected to grow slower than other industry participants.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse 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 in mind, we wouldn't be too quick to come to a conclusion on El Puerto de Liverpool. de. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple El Puerto de Liverpool. de analysts - going out to 2026, 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 El Puerto de Liverpool. de 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.