Locaweb Serviços de Internet S.A. (BVMF:LWSA3) Second-Quarter Results: Here's What Analysts Are Forecasting For This Year
Investors in Locaweb Serviços de Internet S.A. (BVMF:LWSA3) had a good week, as its shares rose 3.9% to close at R$4.03 following the release of its second-quarter results. It was an okay result overall, with revenues coming in at R$375m, roughly what the analysts had been expecting. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Taking into account the latest results, the consensus forecast from Locaweb Serviços de Internet's nine analysts is for revenues of R$1.64b in 2026. This reflects a meaningful 8.8% improvement in revenue compared to the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of R$1.58b and earnings per share (EPS) of R$0.27 in 2026. What's really interesting is that while the consensus made a small lift in revenue estimates, it no longer provides an earnings per share estimate. This suggests that revenues are now the focus of the business after this latest result.
See our latest analysis for Locaweb Serviços de Internet
There's been no real change to the consensus price target of R$5.88, with Locaweb Serviços de Internet 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. Currently, the most bullish analyst values Locaweb Serviços de Internet at R$7.00 per share, while the most bearish prices it at R$5.00. 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.
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. The analysts are definitely expecting Locaweb Serviços de Internet's growth to accelerate, with the forecast 18% annualised growth to the end of 2026 ranking favourably alongside historical growth of 14% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 13% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Locaweb Serviços de Internet is expected to grow much faster than its industry.
The Bottom Line
The highlight for us was that the analysts increased their revenue forecasts for Locaweb Serviços de Internet next year. Happily, they also upgraded their revenue estimates, and are forecasting them 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.
We have estimates for Locaweb Serviços de Internet from its nine analysts out to 2028, and you can see them free on our platform here.
Plus, you should also learn about the 1 warning sign we've spotted with Locaweb Serviços de Internet .
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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.