The Companhia de Saneamento do Paraná - SANEPAR (BVMF:SAPR11) Second-Quarter Results Are Out And Analysts Have Published New Forecasts
Companhia de Saneamento do Paraná - SANEPAR (BVMF:SAPR11) shareholders are probably feeling a little disappointed, since its shares fell 2.2% to R$32.63 in the week after its latest quarterly results. The results were mixed overall, with revenues slightly ahead of analyst estimates at R$1.9b. Statutory losses by contrast were 4.3% larger than predictions at R$1.67 per share. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Taking into account the latest results, the consensus forecast from Companhia de Saneamento do Paraná - SANEPAR's nine analysts is for revenues of R$7.78b in 2026. This reflects a satisfactory 3.1% improvement in revenue compared to the last 12 months. Per-share earnings are expected to jump 263% to R$5.47. In the lead-up to this report, the analysts had been modelling revenues of R$7.72b and earnings per share (EPS) of R$4.44 in 2026. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the great increase in earnings per share expectations following these results.
Check out our latest analysis for Companhia de Saneamento do Paraná - SANEPAR
The consensus price target was unchanged at R$41.88, 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 Companhia de Saneamento do Paraná - SANEPAR at R$50.88 per share, while the most bearish prices it at R$33.45. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
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. We would highlight that Companhia de Saneamento do Paraná - SANEPAR's revenue growth is expected to slow, with the forecast 6.3% annualised growth rate until the end of 2026 being well below the historical 8.4% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 3.2% annually. So it's pretty clear that, while Companhia de Saneamento do Paraná - SANEPAR's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Companhia de Saneamento do Paraná - SANEPAR's earnings potential next year. Happily, there were no major changes to revenue forecasts, with the business still 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.
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 Companhia de Saneamento do Paraná - SANEPAR going out to 2028, and you can see them free on our platform here..
However, before you get too enthused, we've discovered 2 warning signs for Companhia de Saneamento do Paraná - SANEPAR 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.