GPS Participações e Empreendimentos S.A. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions
GPS Participações e Empreendimentos S.A. (BVMF:GGPS3) shareholders are probably feeling a little disappointed, since its shares fell 3.5% to R$11.22 in the week after its latest second-quarter results. Revenues were R$4.6b, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at R$0.50, an impressive 113% 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 consensus forecast from GPS Participações e Empreendimentos' eleven analysts is for revenues of R$19.5b in 2026. This reflects a notable 8.3% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to decrease 9.5% to R$1.10 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of R$19.3b and earnings per share (EPS) of R$1.06 in 2026. So the consensus seems to have become somewhat more optimistic on GPS Participações e Empreendimentos' earnings potential following these results.
View our latest analysis for GPS Participações e Empreendimentos
The consensus price target was unchanged at R$20.33, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values GPS Participações e Empreendimentos at R$30.00 per share, while the most bearish prices it at R$15.10. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
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. It's pretty clear that there is an expectation that GPS Participações e Empreendimentos' revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 17% growth on an annualised basis. This is compared to a historical growth rate of 22% 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% per year. So it's pretty clear that, while GPS Participações e Empreendimentos' revenue growth is expected to slow, it's still expected to grow faster than the industry itself.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards GPS Participações e Empreendimentos 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 R$20.33, with the latest estimates not enough to have an impact on their price targets.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for GPS Participações e Empreendimentos going out to 2028, and you can see them free on our platform here..
However, before you get too enthused, we've discovered 1 warning sign for GPS Participações e Empreendimentos that 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.