Wal-Mart de México, S.A.B. de C.V. (BMV:WALMEX) Second-Quarter Results Just Came Out: Here's What Analysts Are Forecasting For This Year
Last week, you might have seen that Wal-Mart de México, S.A.B. de C.V. (BMV:WALMEX) released its quarterly result to the market. The early response was not positive, with shares down 2.8% to Mex$48.08 in the past week. It was a credible result overall, with revenues of Mex$251b and statutory earnings per share of Mex$0.65 both in line with analyst estimates, showing that Wal-Mart de México. de is executing in line with expectations. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Taking into account the latest results, the current consensus from Wal-Mart de México. de's 13 analysts is for revenues of Mex$1.05t in 2026. This would reflect an okay 2.8% increase on its revenue over the past 12 months. Per-share earnings are expected to accumulate 4.2% to Mex$3.03. Yet prior to the latest earnings, the analysts had been anticipated revenues of Mex$1.05t and earnings per share (EPS) of Mex$3.11 in 2026. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.
View our latest analysis for Wal-Mart de México. de
The consensus price target held steady at Mex$61.71, 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. There are some variant perceptions on Wal-Mart de México. de, with the most bullish analyst valuing it at Mex$81.00 and the most bearish at Mex$52.00 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
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. It's pretty clear that there is an expectation that Wal-Mart de México. de's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 5.6% growth on an annualised basis. This is compared to a historical growth rate of 7.7% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 6.3% annually. So it's pretty clear that, while Wal-Mart de México. de's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Wal-Mart de México. de. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
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 estimates - from multiple Wal-Mart de México. de analysts - going out to 2028, and you can see them free on our platform here.
Before you take the next step you should know about the 1 warning sign for Wal-Mart de México. de that we have uncovered.
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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.