Controladora Vuela Compañía de Aviación, S.A.B. de C.V. Just Beat EPS By 23%: Here's What Analysts Think Will Happen Next

Controladora Vuela Compañía de Aviación, S.A.B. de C.V. (BMV:VOLARA) defied analyst predictions to release its annual results, which were ahead of market expectations. It was overall a positive result, with revenues beating expectations by 2.6% to hit US$3.1b. Controladora Vuela Compañía de Aviación. de also reported a statutory profit of US$0.11, which was an impressive 23% above what the analysts had forecast. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Controladora Vuela Compañía de Aviación. de

After the latest results, the eleven analysts covering Controladora Vuela Compañía de Aviación. de are now predicting revenues of US$3.26b in 2025. If met, this would reflect a credible 3.8% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to tumble 27% to US$0.08 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$3.33b and earnings per share (EPS) of US$0.097 in 2025. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a substantial drop in EPS estimates.

The consensus price target held steady at Mex$23.19, 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 Controladora Vuela Compañía de Aviación. de, with the most bullish analyst valuing it at Mex$25.60 and the most bearish at Mex$19.50 per share. This is a very narrow spread of estimates, implying either that Controladora Vuela Compañía de Aviación. de is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

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. It's pretty clear that there is an expectation that Controladora Vuela Compañía de Aviación. de's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 3.8% growth on an annualised basis. This is compared to a historical growth rate of 21% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 6.7% per year. Factoring in the forecast slowdown in growth, it seems obvious that Controladora Vuela Compañía de Aviación. de is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Controladora Vuela Compañía de Aviación. de. Long-term earnings power is much more important than next year's profits. We have forecasts for Controladora Vuela Compañía de Aviación. de going out to 2027, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 2 warning signs for Controladora Vuela Compañía de Aviación. de you should be aware of, and 1 of them is a bit concerning.

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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.