It's been a sad week for Construtora Tenda S.A. (BVMF:TEND3), who've watched their investment drop 15% to R$16.92 in the week since the company reported its quarterly result. Statutory earnings per share fell badly short of expectations, coming in at R$0.35, some 71% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at R$1.3b. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
After the latest results, the eleven analysts covering Construtora Tenda are now predicting revenues of R$6.10b in 2027. If met, this would reflect a sizeable 24% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to shoot up 62% to R$6.95. In the lead-up to this report, the analysts had been modelling revenues of R$6.12b and earnings per share (EPS) of R$6.95 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 Construtora Tenda
It will come as no surprise then, to learn that the consensus price target is largely unchanged at R$45.46. 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. There are some variant perceptions on Construtora Tenda, with the most bullish analyst valuing it at R$58.00 and the most bearish at R$29.00 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.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's clear from the latest estimates that Construtora Tenda's rate of growth is expected to accelerate meaningfully, with the forecast 19% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 15% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 11% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Construtora Tenda is expected to grow much faster than its 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, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at R$45.46, with the latest estimates not enough to have an impact on their price targets.
With that in mind, we wouldn't be too quick to come to a conclusion on Construtora Tenda. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Construtora Tenda going out to 2028, and you can see them free on our platform here..
And what about risks? Every company has them, and we've spotted 3 warning signs for Construtora Tenda (of which 1 makes us a bit uncomfortable!) you should know about.
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