Cruzeiro do Sul Educacional S.A. Just Beat EPS By 20%: Here's What Analysts Think Will Happen Next
Cruzeiro do Sul Educacional S.A. (BVMF:CSED3) just released its latest quarterly results and things are looking bullish. It was overall a positive result, with revenues beating expectations by 3.4% to hit R$780m. Cruzeiro do Sul Educacional also reported a statutory profit of R$0.28, which was an impressive 20% above what the analysts had forecast. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Cruzeiro do Sul Educacional after the latest results.
Taking into account the latest results, Cruzeiro do Sul Educacional's six analysts currently expect revenues in 2026 to be R$2.96b, approximately in line with the last 12 months. Statutory earnings per share are forecast to shrink 3.9% to R$0.82 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of R$2.95b and earnings per share (EPS) of R$0.84 in 2026. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.
View our latest analysis for Cruzeiro do Sul Educacional
The average price target fell 11% to R$6.50, with reduced earnings forecasts clearly tied to a lower valuation estimate. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Cruzeiro do Sul Educacional, with the most bullish analyst valuing it at R$8.00 and the most bearish at R$4.50 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Cruzeiro do Sul Educacional's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 2.2% growth on an annualised basis. This is compared to a historical growth rate of 11% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 4.5% annually. Factoring in the forecast slowdown in growth, it seems obvious that Cruzeiro do Sul Educacional is also expected to grow slower than other industry participants.
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Cruzeiro do Sul Educacional going out to 2028, 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 Cruzeiro do Sul Educacional , and understanding it should be part of your investment process.
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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.