Results: Suzano S.A. Exceeded Expectations And The Consensus Has Updated Its Estimates

Investors in Suzano S.A. (BVMF:SUZB3) had a good week, as its shares rose 6.5% to close at R$53.40 following the release of its third-quarter results. It looks like a credible result overall - although revenues of R$17b were what the analysts expected, Suzano surprised by delivering a (statutory) profit of R$1.70 per share, an impressive 88% above what was forecast. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

Following the latest results, Suzano's 16 analysts are now forecasting revenues of R$63.9b in 2027. This would be a major 22% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to plunge 21% to R$5.35 in the same period. Before this earnings report, the analysts had been forecasting revenues of R$63.8b and earnings per share (EPS) of R$5.30 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.

View our latest analysis for Suzano

The analysts reconfirmed their price target of R$63.19, 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 Suzano at R$75.00 per share, while the most bearish prices it at R$52.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Suzano's growth to accelerate, with the forecast 18% annualised growth to the end of 2027 ranking favourably alongside historical growth of 3.8% 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 5.2% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Suzano is expected to grow much 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. The consensus price target held steady at R$63.19, with the latest estimates not enough to have an impact on their price targets.

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 Suzano analysts - going out to 2028, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 3 warning signs for Suzano (2 are concerning) you should be aware of.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.