Grupo Traxión, S.A.B. de C.V. Just Missed EPS By 43%: Here's What Analysts Think Will Happen Next

As you might know, Grupo Traxión, S.A.B. de C.V. (BMV:TRAXIONA) last week released its latest third-quarter, and things did not turn out so great for shareholders. Results showed a clear earnings miss, with Mex$8.6b revenue coming in 5.6% lower than what the analystsexpected. Statutory earnings per share (EPS) of Mex$0.20 missed the mark badly, arriving some 43% below what was expected. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Grupo Traxión. de after the latest results.

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Taking into account the latest results, the most recent consensus for Grupo Traxión. de from seven analysts is for revenues of Mex$39.9b in 2026. If met, it would imply a sizeable 32% increase on its revenue over the past 12 months. In the lead-up to this report, the analysts had been modelling revenues of Mex$40.6b and earnings per share (EPS) of Mex$2.29 in 2026. 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.

See our latest analysis for Grupo Traxión. de

The average price target fell 6.6% to Mex$28.22, withthe analysts clearly having become less optimistic about Grupo Traxión. de'sprospects following its latest earnings. 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. Currently, the most bullish analyst values Grupo Traxión. de at Mex$42.00 per share, while the most bearish prices it at Mex$20.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

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 analysts are definitely expecting Grupo Traxión. de's growth to accelerate, with the forecast 25% annualised growth to the end of 2026 ranking favourably alongside historical growth of 16% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 6.9% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Grupo Traxión. de is expected to grow much faster than its 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. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Grupo Traxión. de's future valuation.

At least one of Grupo Traxión. de's seven 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 2 warning signs (and 1 which is a bit unpleasant) 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.