Lavoro Limited (NASDAQ:LVRO) Just Reported And Analysts Have Been Cutting Their Estimates

Lavoro Limited (NASDAQ:LVRO) just released its latest first-quarter report and things are not looking great. It was a pretty negative result overall, with revenues of R$1.9b missing analyst predictions by 6.0%. Worse, the business reported a statutory loss of R$2.04 per share, much larger than the analysts had forecast prior to the result. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for Lavoro

Taking into account the latest results, the two analysts covering Lavoro provided consensus estimates of R$7.04b revenue in 2025, which would reflect a sizeable 22% decline over the past 12 months. Per-share losses are expected to explode, reaching R$10.69 per share. Before this latest report, the consensus had been expecting revenues of R$8.65b and R$7.69 per share in losses. So there's been quite a change-up of views after the recent consensus updates, withthe analysts making a serious cut to their revenue outlook while also expecting losses per share to increase.

There was no major change to the consensus price target of US$5.50, signalling that the business is performing roughly in line with expectations, despite lower earnings per share forecasts.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Lavoro's past performance and to peers in the same industry. One more thing stood out to us about these estimates, and it's the idea that Lavoro's decline is expected to accelerate, with revenues forecast to fall at an annualised rate of 29% to the end of 2025. This tops off a historical decline of 3.7% a year over the past year. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 5.4% per year. So while a broad number of companies are forecast to grow, unfortunately Lavoro is expected to see its revenue affected worse than other companies in the industry.

The Bottom Line

The most important thing to take away is that the analysts increased their loss per share estimates for next year. On the negative side, they also downgraded their revenue estimates, and 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 Lavoro. Long-term earnings power is much more important than next year's profits. We have analyst estimates for Lavoro going out as far as 2026, and you can see them free on our platform here.

Plus, you should also learn about the 2 warning signs we've spotted with Lavoro (including 1 which can't be ignored) .

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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.