Millicom International Cellular S.A. (NASDAQ:TIGO) Just Reported Full-Year Earnings: Have Analysts Changed Their Mind On The Stock?
Shareholders of Millicom International Cellular S.A. (NASDAQ:TIGO) will be pleased this week, given that the stock price is up 17% to US$18.65 following its latest yearly results. It was an okay report, and revenues came in at US$5.7b, approximately in line with analyst estimates leading up to the results announcement. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
See our latest analysis for Millicom International Cellular
Taking into account the latest results, the current consensus from Millicom International Cellular's nine analysts is for revenues of US$5.90b in 2024. This would reflect a reasonable 4.2% increase on its revenue over the past 12 months. Earnings are expected to improve, with Millicom International Cellular forecast to report a statutory profit of US$2.03 per share. In the lead-up to this report, the analysts had been modelling revenues of US$5.88b and earnings per share (EPS) of US$1.96 in 2024. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.
The consensus price target was unchanged at US$22.34, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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 Millicom International Cellular at US$30.00 per share, while the most bearish prices it at US$18.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's pretty clear that there is an expectation that Millicom International Cellular's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 4.2% growth on an annualised basis. This is compared to a historical growth rate of 8.1% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 3.4% annually. Factoring in the forecast slowdown in growth, it looks like Millicom International Cellular is forecast to grow at about the same rate as the wider industry.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Millicom International Cellular following these results. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at US$22.34, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Millicom International Cellular going out to 2026, and you can see them free on our platform here.
Plus, you should also learn about the 1 warning sign we've spotted with Millicom International Cellular .
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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.
