Grupo Traxión, S.A.B. de C.V. (BMV:TRAXIONA) Yearly Results: Here's What Analysts Are Forecasting For This Year

The annual results for Grupo Traxión, S.A.B. de C.V. (BMV:TRAXIONA) were released last week, making it a good time to revisit its performance. Grupo Traxión. de reported in line with analyst predictions, delivering revenues of Mex$25b and statutory earnings per share of Mex$1.13, suggesting the business is executing well and in line with its plan. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for Grupo Traxión. de

Taking into account the latest results, the current consensus from Grupo Traxión. de's six analysts is for revenues of Mex$28.6b in 2024. This would reflect a decent 15% increase on its revenue over the past 12 months. Per-share earnings are expected to bounce 57% to Mex$1.85. Yet prior to the latest earnings, the analysts had been anticipated revenues of Mex$28.4b and earnings per share (EPS) of Mex$2.20 in 2024. So there's definitely been a decline in sentiment after the latest results, noting the substantial drop in new EPS forecasts.

The consensus price target held steady at Mex$44.68, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Grupo Traxión. de, with the most bullish analyst valuing it at Mex$51.00 and the most bearish at Mex$38.10 per share. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Grupo Traxión. de is an easy business to forecast or the the analysts are all using similar assumptions.

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 can infer from the latest estimates that forecasts expect a continuation of Grupo Traxión. de'shistorical trends, as the 15% annualised revenue growth to the end of 2024 is roughly in line with the 18% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 15% annually. So although Grupo Traxión. 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 concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Grupo Traxión. de. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as 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.

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 forecasts for Grupo Traxión. de going out to 2026, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 1 warning sign for Grupo Traxión. de that you need to be mindful of.

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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.