Analyst Estimates: Here's What Brokers Think Of Millicom International Cellular S.A. (NASDAQ:TIGO) After Its First-Quarter Report

It's been a mediocre week for Millicom International Cellular S.A. (NASDAQ:TIGO) shareholders, with the stock dropping 10% to US$17.91 in the week since its latest first-quarter results. It was an okay report, and revenues came in at US$1.4b, approximately in line with analyst estimates leading up to the results announcement. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for Millicom International Cellular

After the latest results, the nine analysts covering Millicom International Cellular are now predicting revenues of US$5.70b in 2023. If met, this would reflect a satisfactory 2.0% improvement in sales compared to the last 12 months. Before this earnings report, the analysts had been forecasting revenues of US$5.69b and earnings per share (EPS) of US$1.20 in 2023. So we can see that while the consensus made no real change to its revenue estimates, it also no longer provides an earnings per share estimate, suggesting that revenues are what the market is focusing on after the latest results.

There's been no real change to the consensus price target of US$22.82, with Millicom International Cellular seemingly executing in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Millicom International Cellular analyst has a price target of US$30.00 per share, while the most pessimistic values it at US$19.50. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Millicom International Cellular's revenue growth is expected to slow, with the forecast 2.7% annualised growth rate until the end of 2023 being well below the historical 7.0% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 4.0% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Millicom International Cellular.

The Bottom Line

The clear take away from these updates is that the analysts made no change to their revenue estimates for next year, with the business apparently performing in line with their models. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - although our data does suggest that Millicom International Cellular's revenues are expected to perform worse than the wider industry. The consensus price target held steady at US$22.82, with the latest estimates not enough to have an impact on their price targets.

We have estimates for Millicom International Cellular from its nine analysts out to 2025, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 3 warning signs with Millicom International Cellular (at least 2 which are concerning) , and understanding them should be part of your investment process.

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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.