Betterware de México, S.A.P.I. de C.V. Just Missed EPS By 16%: Here's What Analysts Think Will Happen Next

Betterware de México, S.A.P.I. de C.V. (NYSE:BWMX) shareholders are probably feeling a little disappointed, since its shares fell 3.2% to US$15.59 in the week after its latest third-quarter results. Statutory earnings per share of Mex$9.90 unfortunately missed expectations by 16%, although it was encouraging to see revenues of Mex$4.8b exceed expectations by 6.4%. 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.

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Taking into account the latest results, the consensus forecast from Betterware de MéxicoP.I. de's four analysts is for revenues of Mex$20.4b in 2027. This reflects a substantial 25% improvement in revenue compared to the last 12 months. Per-share earnings are expected to shoot up 57% to Mex$52.91. Before this earnings report, the analysts had been forecasting revenues of Mex$20.1b and earnings per share (EPS) of Mex$53.79 in 2027. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

See our latest analysis for Betterware de MéxicoP.I. de

With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 5.0% to US$29.06. It looks as though they previously had some doubts over whether the business would live up to their expectations. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Betterware de MéxicoP.I. de, with the most bullish analyst valuing it at US$31.01 and the most bearish at US$26.07 per share. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Betterware de MéxicoP.I. de is an easy business to forecast or the the analysts are all using similar assumptions.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Betterware de MéxicoP.I. de's past performance and to peers in the same industry. The analysts are definitely expecting Betterware de MéxicoP.I. de's growth to accelerate, with the forecast 20% annualised growth to the end of 2027 ranking favourably alongside historical growth of 9.0% 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 5.9% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Betterware de MéxicoP.I. de is expected to grow much faster than its industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. 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. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Betterware de MéxicoP.I. de going out to 2028, and you can see them free on our platform here..

We don't want to rain on the parade too much, but we did also find 2 warning signs for Betterware de MéxicoP.I. de that you need to be mindful of.

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