Cencosud S.A. (SNSE:CENCOSUD) Just Released Its Second-Quarter Earnings: Here's What Analysts Think
Investors in Cencosud S.A. (SNSE:CENCOSUD) had a good week, as its shares rose 4.9% to close at CL$2,050 following the release of its second-quarter results. The result was fairly weak overall, with revenues of CL$4.1t being 2.3% less than what the analysts had been modelling. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. 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 most recent consensus for Cencosud from ten analysts is for revenues of CL$17t in 2026. If met, it would imply a reasonable 4.4% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to shoot up 140% to CL$139. In the lead-up to this report, the analysts had been modelling revenues of CL$17t and earnings per share (EPS) of CL$181 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 pretty serious reduction to EPS estimates.
Check out our latest analysis for Cencosud
It might be a surprise to learn that the consensus price target was broadly unchanged at CL$2,832, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Cencosud at CL$3,520 per share, while the most bearish prices it at CL$2,040. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
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. The period to the end of 2026 brings more of the same, according to the analysts, with revenue forecast to display 9.0% growth on an annualised basis. That is in line with its 8.2% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 6.5% annually. So it's pretty clear that Cencosud is forecast to grow substantially faster than its 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. 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.
With that in mind, we wouldn't be too quick to come to a conclusion on Cencosud. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Cencosud going out to 2028, and you can see them free on our platform here..
You still need to take note of risks, for example - Cencosud has 4 warning signs (and 1 which is a bit concerning) we think you should know about.
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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.