Earnings Beat: Consorcio ARA, S. A. B. de C. V. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

The second-quarter results for Consorcio ARA, S. A. B. de C. V. (BMV:ARA) were released last week, making it a good time to revisit its performance. It looks like a credible result overall - although revenues of Mex$2.3b were what the analysts expected, Consorcio ARA S. A. B. de C. V surprised by delivering a (statutory) profit of Mex$0.30 per share, an impressive 114% above what was forecast. 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.

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Following last week's earnings report, Consorcio ARA S. A. B. de C. V's dual analysts are forecasting 2026 revenues to be Mex$9.06b, approximately in line with the last 12 months. Statutory earnings per share are forecast to decline 15% to Mex$0.64 in the same period. Before this earnings report, the analysts had been forecasting revenues of Mex$9.17b and earnings per share (EPS) of Mex$0.60 in 2026. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

View our latest analysis for Consorcio ARA S. A. B. de C. V

The consensus price target was unchanged at Mex$7.55, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Consorcio ARA S. A. B. de C. V's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 2.9% growth on an annualised basis. This is compared to a historical growth rate of 6.0% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 12% annually. Factoring in the forecast slowdown in growth, it seems obvious that Consorcio ARA S. A. B. de C. V is also expected to grow slower than other industry participants.

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 Consorcio ARA S. A. B. de C. V following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse 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 least one analyst has provided forecasts out to 2028, which can be seen for free on our platform here.

Even so, be aware that Consorcio ARA S. A. B. de C. V is showing 1 warning sign in our investment analysis , 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.