The quarterly results for Wal-Mart de México, S.A.B. de C.V. (BMV:WALMEX) were released last week, making it a good time to revisit its performance. Revenues of Mex$249b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at Mex$0.64, missing estimates by 8.7%. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Wal-Mart de México. de after the latest results.
After the latest results, the 15 analysts covering Wal-Mart de México. de are now predicting revenues of Mex$1.11t in 2027. If met, this would reflect a notable 8.3% improvement in revenue compared to the last 12 months. Per-share earnings are expected to accumulate 9.2% to Mex$3.14. In the lead-up to this report, the analysts had been modelling revenues of Mex$1.11t and earnings per share (EPS) of Mex$3.15 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 Wal-Mart de México. de
It will come as no surprise then, to learn that the consensus price target is largely unchanged at Mex$55.88. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Wal-Mart de México. de, with the most bullish analyst valuing it at Mex$81.00 and the most bearish at Mex$42.00 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
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. We can infer from the latest estimates that forecasts expect a continuation of Wal-Mart de México. de'shistorical trends, as the 6.6% annualised revenue growth to the end of 2027 is roughly in line with the 7.3% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 6.2% per year. It's clear that while Wal-Mart de México. de's revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.
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, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Wal-Mart de México. de going out to 2028, and you can see them free on our platform here.
We don't want to rain on the parade too much, but we did also find 1 warning sign for Wal-Mart de México. de that you need to be mindful of.
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