Earnings Miss: GMéxico Transportes, S.A.B. de C.V. Missed EPS By 5.1% And Analysts Are Revising Their Forecasts

GMéxico Transportes, S.A.B. de C.V. (BMV:GMXT) last week reported its latest annual results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. GMéxico Transportes. de beat revenue expectations by 4.3%, at Mex$56b. Statutory earnings per share (EPS) came in at Mex$1.95, some 5.1% short of analyst estimates. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. 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 GMéxico Transportes. de

Taking into account the latest results, the current consensus from GMéxico Transportes. de's four analysts is for revenues of Mex$59.3b in 2024. This would reflect a satisfactory 5.1% increase on its revenue over the past 12 months. Per-share earnings are expected to leap 20% to Mex$2.36. In the lead-up to this report, the analysts had been modelling revenues of Mex$58.8b and earnings per share (EPS) of Mex$2.33 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at Mex$42.18. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on GMéxico Transportes. de, with the most bullish analyst valuing it at Mex$50.97 and the most bearish at Mex$30.86 per share. With such a wide range in price targets, analysts are almost certainly betting on widely divergent outcomes in the underlying business. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the GMéxico Transportes. de's past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of GMéxico Transportes. de'shistorical trends, as the 5.1% annualised revenue growth to the end of 2024 is roughly in line with the 4.7% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 16% annually. So it's pretty clear that GMéxico Transportes. de is expected to grow slower than similar companies in the same industry.

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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that GMéxico Transportes. de's revenue is expected to 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 said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for GMéxico Transportes. de 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 GMéxico Transportes. 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.