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Earnings Beat: Industrias Bachoco, S.A.B. de C.V. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

Simply Wall St
·3 min read

Industrias Bachoco, S.A.B. de C.V. (NYSE:IBA) investors will be delighted, with the company turning in some strong numbers with its latest results. The company beat both earnings and revenue forecasts, with revenue of Mex$19b, some 6.4% above estimates, and statutory earnings per share (EPS) coming in at Mex$17.56, 38% ahead of expectations. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for Industrias Bachoco. de

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Following the latest results, Industrias Bachoco. de's four analysts are now forecasting revenues of Mex$70.0b in 2021. This would be an okay 6.7% improvement in sales compared to the last 12 months. Per-share earnings are expected to rise 7.5% to Mex$68.42. In the lead-up to this report, the analysts had been modelling revenues of Mex$68.6b and earnings per share (EPS) of Mex$67.83 in 2021. So it looks like there's been no major change in sentiment following the latest results, although the analysts have made a small increase to to revenue forecasts.

Even though revenue forecasts increased, there was no change to the consensus price target of US$41.00, suggesting the analysts are focused on earnings as the driver of value creation.

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. Next year brings more of the same, according to the analysts, with revenue forecast to grow 6.7%, in line with its 6.8% annual growth over the past five years. Compare this with the wider industry, which analyst estimates (in aggregate) suggest will see revenues grow 2.9% next year. So although Industrias Bachoco. de is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider 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. Happily, they also upgraded their revenue estimates, and are forecasting revenues to grow faster than the wider industry. The consensus price target held steady at Mex$41.00, 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 Industrias Bachoco. de analysts - going out to 2024, 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 1 warning sign with Industrias Bachoco. de , and understanding it should be part of your investment process.

This article by Simply Wall St is general in nature. 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.

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