Direcional Engenharia S.A. Just Missed EPS By 14%: Here's What Analysts Think Will Happen Next
Last week, you might have seen that Direcional Engenharia S.A. (BVMF:DIRR3) released its second-quarter result to the market. The early response was not positive, with shares down 8.5% to R$10.59 in the past week. Revenues were in line with forecasts, at R$1.3b, although statutory earnings per share came in 14% below what the analysts expected, at R$0.38 per share. 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 thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Taking into account the latest results, the most recent consensus for Direcional Engenharia from eleven analysts is for revenues of R$5.53b in 2026. If met, it would imply a meaningful 15% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to leap 22% to R$2.01. Yet prior to the latest earnings, the analysts had been anticipated revenues of R$5.40b and earnings per share (EPS) of R$1.91 in 2026. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.
View our latest analysis for Direcional Engenharia
Despite these upgrades,the analysts have not made any major changes to their price target of R$19.42, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. 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. Currently, the most bullish analyst values Direcional Engenharia at R$22.00 per share, while the most bearish prices it at R$17.00. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Direcional Engenharia is an easy business to forecast or the the analysts are all using similar assumptions.
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. The analysts are definitely expecting Direcional Engenharia's growth to accelerate, with the forecast 31% annualised growth to the end of 2026 ranking favourably alongside historical growth of 22% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 12% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Direcional Engenharia to grow faster than the wider industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Direcional Engenharia's earnings potential next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. The consensus price target held steady at R$19.42, with the latest estimates not enough to have an impact on their price targets.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Direcional Engenharia analysts - going out to 2028, and you can see them free on our platform here.
It is also worth noting that we have found 2 warning signs for Direcional Engenharia that you need to take into consideration.
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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.