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Liberty Latin America Ltd. (NASDAQ:LILA) Third-Quarter Results: Here's What Analysts Are Forecasting For Next Year
It's been a good week for Liberty Latin America Ltd. (NASDAQ:LILA) shareholders, because the company has just released its latest third-quarter results, and the shares gained 5.6% to US$8.91. Revenues were in line with expectations, at US$1.1b, while statutory losses ballooned to US$0.42 per share. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Liberty Latin America after the latest results.
Taking into account the latest results, the current consensus from Liberty Latin America's five analysts is for revenues of US$4.62b in 2027. This would reflect a reasonable 3.5% increase on its revenue over the past 12 months. Liberty Latin America is also expected to turn profitable, with statutory earnings of US$0.045 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$4.62b and earnings per share (EPS) of US$0.045 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 Liberty Latin America
It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$10.55. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Liberty Latin America at US$14.00 per share, while the most bearish prices it at US$7.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
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. One thing stands out from these estimates, which is that Liberty Latin America is forecast to grow faster in the future than it has in the past, with revenues expected to display 2.8% annualised growth until the end of 2027. If achieved, this would be a much better result than the 2.1% annual decline 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 revenue grow 42% per year. So although Liberty Latin America's revenue growth is expected to improve, it is still expected to grow slower than the 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, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Liberty Latin America's revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$10.55, 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. At Simply Wall St, we have a full range of analyst estimates for Liberty Latin America going out to 2028, and you can see them free on our platform here..
You can also see whether Liberty Latin America is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.
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