Earnings Beat: Betterware de México, S.A.P.I. de C.V. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

Betterware de México, S.A.P.I. de C.V. (NYSE:BWMX) defied analyst predictions to release its second-quarter results, which were ahead of market expectations. It was overall a positive result, with revenues beating expectations by 4.1% to hit Mex$3.6b. Betterware de MéxicoP.I. de also reported a statutory profit of Mex$8.77, which was an impressive 55% above what the analysts had forecast. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Betterware de MéxicoP.I. de after the latest results.

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After the latest results, the two analysts covering Betterware de MéxicoP.I. de are now predicting revenues of Mex$14.7b in 2025. If met, this would reflect a credible 3.9% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to shoot up 119% to Mex$34.72. Yet prior to the latest earnings, the analysts had been anticipated revenues of Mex$14.5b and earnings per share (EPS) of Mex$34.54 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

See our latest analysis for Betterware de MéxicoP.I. de

It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$18.78.

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 Betterware de MéxicoP.I. de's revenue growth is expected to slow, with the forecast 8.0% annualised growth rate until the end of 2025 being well below the historical 16% 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 Betterware de MéxicoP.I. de 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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at US$18.78, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

You should always think about risks though. Case in point, we've spotted 4 warning signs for Betterware de MéxicoP.I. de you should be aware of.

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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.