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

It's been a pretty great week for Tecnoglass Inc. (NYSE:TGLS) shareholders, with its shares surging 11% to US$76.00 in the week since its latest quarterly results. The result was positive overall - although revenues of US$238m were in line with what the analysts predicted, Tecnoglass surprised by delivering a statutory profit of US$1.05 per share, modestly greater than expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Tecnoglass after the latest results.

Check out our latest analysis for Tecnoglass

Taking into account the latest results, the consensus forecast from Tecnoglass' five analysts is for revenues of US$981.7m in 2025. This reflects a decent 16% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to soar 32% to US$4.23. Before this earnings report, the analysts had been forecasting revenues of US$984.7m and earnings per share (EPS) of US$4.16 in 2025. 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.

The consensus price target rose 10% to US$75.75despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of Tecnoglass' earnings by assigning a price premium. 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. The most optimistic Tecnoglass analyst has a price target of US$88.00 per share, while the most pessimistic values it at US$65.00. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Tecnoglass shareholders.

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. We would highlight that Tecnoglass' revenue growth is expected to slow, with the forecast 13% annualised growth rate until the end of 2025 being well below the historical 19% 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) 5.3% per year. Even after the forecast slowdown in growth, it seems obvious that Tecnoglass is also expected to grow faster than the wider industry.

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, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Tecnoglass going out to 2026, and you can see them free on our platform here..

We also provide an overview of the Tecnoglass Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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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.