Earnings Miss: Grupo Traxión, S.A.B. de C.V. Missed EPS By 79% And Analysts Are Revising Their Forecasts

Grupo Traxión, S.A.B. de C.V. (BMV:TRAXIONA) missed earnings with its latest quarterly results, disappointing overly-optimistic forecasters. Unfortunately, Grupo Traxión. de delivered a serious earnings miss. Revenues of Mex$6.9b were 11% below expectations, and statutory earnings per share of Mex$0.10 missed estimates by 79%. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Taking into account the latest results, the consensus forecast from Grupo Traxión. de's four analysts is for revenues of Mex$33.0b in 2025. This reflects a decent 13% improvement in revenue compared to the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of Mex$33.7b and earnings per share (EPS) of Mex$2.41 in 2025. So we can see that while the consensus made no real change to its revenue estimates, it also no longer provides an earnings per share estimate. This suggests that revenues are what the market is focusing on after the latest results.

View our latest analysis for Grupo Traxión. de

We'd also point out that thatthe analysts have made no major changes to their price target of Mex$35.89. 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 Grupo Traxión. de, with the most bullish analyst valuing it at Mex$47.00 and the most bearish at Mex$25.00 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.

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. The analysts are definitely expecting Grupo Traxión. de's growth to accelerate, with the forecast 27% annualised growth to the end of 2025 ranking favourably alongside historical growth of 17% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 7.8% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Grupo Traxión. de to grow faster than the wider industry.

The Bottom Line

The clear take away from these updates is that the analysts made no change to their revenue estimates for next year, with the business apparently performing in line with their models. 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.

At least one of Grupo Traxión. de's four analysts has provided estimates out to 2027, which can be seen for free on our platform here.

You still need to take note of risks, for example - Grupo Traxión. de has 3 warning signs (and 1 which is a bit concerning) we think you should know about.

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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.