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

Grupo Traxión, S.A.B. de C.V. (BMV:TRAXIONA) shareholders are probably feeling a little disappointed, since its shares fell 9.9% to Mex$30.96 in the week after its latest yearly results. Revenues of Mex$17b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at Mex$1.62, missing estimates by 3.4%. 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.

View our latest analysis for Grupo Traxión. de

Taking into account the latest results, the most recent consensus for Grupo Traxión. de from four analysts is for revenues of Mex$19.2b in 2022 which, if met, would be a meaningful 12% increase on its sales over the past 12 months. Statutory earnings per share are forecast to dip 8.0% to Mex$1.62 in the same period. In the lead-up to this report, the analysts had been modelling revenues of Mex$19.3b and earnings per share (EPS) of Mex$1.64 in 2022. 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$44.67. 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. Currently, the most bullish analyst values Grupo Traxión. de at Mex$48.00 per share, while the most bearish prices it at Mex$40.00. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that Grupo Traxión. de's revenue growth is expected to slow, with the forecast 12% annualised growth rate until the end of 2022 being well below the historical 24% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 18% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Grupo Traxión. de.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - although our data does suggest that Grupo Traxión. de's revenues are 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Grupo Traxión. de going out to 2024, and you can see them free on our platform here.

You can also see our analysis of Grupo Traxión. de's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.