Results: GMéxico Transportes, S.A.B. de C.V. Beat Earnings Expectations And Analysts Now Have New Forecasts

GMéxico Transportes, S.A.B. de C.V. (BMV:GMXT) came out with its second-quarter results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. It looks like a credible result overall - although revenues of Mex$17b were in line with what the analysts predicted, GMéxico Transportes. de surprised by delivering a statutory profit of Mex$0.65 per share, a notable 15% above expectations. 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.

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Taking into account the latest results, the consensus forecast from GMéxico Transportes. de's four analysts is for revenues of Mex$65.1b in 2025. This reflects a reasonable 3.4% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to accumulate 3.9% to Mex$2.20. Before this earnings report, the analysts had been forecasting revenues of Mex$64.2b and earnings per share (EPS) of Mex$1.96 in 2025. Although the revenue estimates have not really changed, we can see there's been a decent improvement in earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.

Check out our latest analysis for GMéxico Transportes. de

There's been no major changes to the consensus price target of Mex$40.14, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. 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 GMéxico Transportes. de analyst has a price target of Mex$62.25 per share, while the most pessimistic values it at Mex$30.41. With such a wide range in price targets, analysts are almost certainly betting on widely divergent outcomes in the underlying business. As a result it might not be a great idea to make decisions based on the consensus price target, which is after all just an average of this wide range of estimates.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 6.8% growth on an annualised basis. That is in line with its 6.1% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 7.7% per year. So although GMéxico Transportes. de is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around GMéxico Transportes. de's earnings potential next year. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at Mex$40.14, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on GMéxico Transportes. de. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple GMéxico Transportes. de analysts - going out to 2027, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for GMéxico Transportes. de that you need to take into consideration.

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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.