Results: Grupo México, S.A.B. de C.V. Beat Earnings Expectations And Analysts Now Have New Forecasts
It's been a good week for Grupo México, S.A.B. de C.V. (BMV:GMEXICOB) shareholders, because the company has just released its latest quarterly results, and the shares gained 7.9% to Mex$215. Revenues were US$5.7b, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at US$0.28, an impressive 24% ahead of estimates. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Taking into account the latest results, the current consensus from Grupo México. de's eleven analysts is for revenues of US$21.8b in 2026. This would reflect a reasonable 3.8% increase on its revenue over the past 12 months. Statutory earnings per share are expected to reduce 7.7% to US$0.74 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$21.9b and earnings per share (EPS) of US$0.85 in 2026. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a substantial drop in EPS estimates.
See our latest analysis for Grupo México. de
The consensus price target held steady at Mex$209, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Grupo México. de analyst has a price target of Mex$285 per share, while the most pessimistic values it at Mex$42.51. With such a wide range in price targets, analysts are almost certainly betting on widely divergent outcomes in the underlying business. As a result it might not be a great idea to make decisions based on the consensus price target, which is after all just an average of this wide range of estimates.
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. The period to the end of 2026 brings more of the same, according to the analysts, with revenue forecast to display 7.8% growth on an annualised basis. That is in line with its 6.9% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 2.7% annually. So although Grupo México. de is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. 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. The consensus price target held steady at Mex$209, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Grupo México. de analysts - going out to 2028, and you can see them free on our platform here.
You still need to take note of risks, for example - Grupo México. de has 2 warning signs we think 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.