The Vamos Locação de Caminhões, Máquinas e Equipamentos S.A. (BVMF:VAMO3) Third-Quarter Results Are Out And Analysts Have Published New Forecasts

There's been a major selloff in Vamos Locação de Caminhões, Máquinas e Equipamentos S.A. (BVMF:VAMO3) shares in the week since it released its quarterly report, with the stock down 63% to R$2.38. It was an okay result overall, with revenues coming in at R$1.6b, roughly what the analysts had been expecting. 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. 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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Taking into account the latest results, the current consensus from Vamos Locação de Caminhões Máquinas e Equipamentos' ten analysts is for revenues of R$7.20b in 2027. This would reflect a meaningful 15% increase on its revenue over the past 12 months. Per-share earnings are expected to shoot up 77% to R$0.60. In the lead-up to this report, the analysts had been modelling revenues of R$7.22b and earnings per share (EPS) of R$0.61 in 2027. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

See our latest analysis for Vamos Locação de Caminhões Máquinas e Equipamentos

The analysts reconfirmed their price target of R$6.14, showing that the business is executing well and in line with expectations. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Vamos Locação de Caminhões Máquinas e Equipamentos at R$10.00 per share, while the most bearish prices it at R$3.10. With such a wide range in price targets, analysts are almost certainly betting on widely divergent outcomes in the underlying business. As a result it might not be a great idea to make decisions based on the consensus price target, which is after all just an average of this wide range of estimates.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We can infer from the latest estimates that forecasts expect a continuation of Vamos Locação de Caminhões Máquinas e Equipamentos'historical trends, as the 12% annualised revenue growth to the end of 2027 is roughly in line with the 11% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 7.1% per year. So it's pretty clear that Vamos Locação de Caminhões Máquinas e Equipamentos is forecast to grow substantially faster than its industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. 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.

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. We have estimates - from multiple Vamos Locação de Caminhões Máquinas e Equipamentos analysts - going out to 2028, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 3 warning signs with Vamos Locação de Caminhões Máquinas e Equipamentos (at least 2 which can't be ignored) , and understanding these should be part of your investment process.

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