Results: Tecnoglass Inc. Beat Earnings Expectations And Analysts Now Have New Forecasts

Tecnoglass Inc. (NYSE:TGLS) investors will be delighted, with the company turning in some strong numbers with its latest results. Tecnoglass beat earnings, with revenues hitting US$203m, ahead of expectations, and statutory earnings per share outperforming analyst reckonings by a solid 13%. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. 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 Tecnoglass

Taking into account the latest results, the current consensus from Tecnoglass' five analysts is for revenues of US$842.0m in 2023, which would reflect a reasonable 7.3% increase on its sales over the past 12 months. Per-share earnings are expected to rise 8.7% to US$4.18. Before this earnings report, the analysts had been forecasting revenues of US$817.8m and earnings per share (EPS) of US$3.89 in 2023. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.

It will come as no surprise to learn that the analysts have increased their price target for Tecnoglass 6.5% to US$52.40on the back of these upgrades. 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 Tecnoglass, with the most bullish analyst valuing it at US$55.00 and the most bearish at US$47.00 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Tecnoglass' past performance and to peers in the same industry. We would highlight that Tecnoglass' revenue growth is expected to slow, with the forecast 9.9% annualised growth rate until the end of 2023 being well below the historical 14% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 4.3% per year. So it's pretty clear that, while Tecnoglass' revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Tecnoglass following these results. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

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 Tecnoglass going out to 2025, and you can see them free on our platform here.

Even so, be aware that Tecnoglass is showing 2 warning signs in our investment analysis , and 1 of those makes us a bit uncomfortable...

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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.