Vamos Locação de Caminhões, Máquinas e Equipamentos S.A. (BVMF:VAMO3) Just Released Its Second-Quarter Results And Analysts Are Updating Their Estimates
Last week, you might have seen that Vamos Locação de Caminhões, Máquinas e Equipamentos S.A. (BVMF:VAMO3) released its quarterly result to the market. The early response was not positive, with shares down 9.1% to R$2.80 in the past week. Results were roughly in line with estimates, with revenues of R$1.6b and statutory earnings per share of R$0.078. 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.
Following the latest results, Vamos Locação de Caminhões Máquinas e Equipamentos' eleven analysts are now forecasting revenues of R$6.68b in 2026. This would be a modest 7.8% improvement in revenue compared to the last 12 months. Per-share earnings are expected to jump 62% to R$0.42. In the lead-up to this report, the analysts had been modelling revenues of R$6.61b and earnings per share (EPS) of R$0.39 in 2026. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.
View our latest analysis for Vamos Locação de Caminhões Máquinas e Equipamentos
The consensus price target was unchanged at R$4.83, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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. Currently, the most bullish analyst values Vamos Locação de Caminhões Máquinas e Equipamentos at R$7.00 per share, while the most bearish prices it at R$3.50. 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.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's clear from the latest estimates that Vamos Locação de Caminhões Máquinas e Equipamentos' rate of growth is expected to accelerate meaningfully, with the forecast 16% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 12% 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 6.1% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Vamos Locação de Caminhões Máquinas e Equipamentos to grow faster than the wider industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Vamos Locação de Caminhões Máquinas e Equipamentos' earnings potential next year. 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$4.83, with the latest estimates not enough to have an impact on their price targets.
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 Vamos Locação de Caminhões Máquinas e Equipamentos going out to 2028, and you can see them free on our platform here..
It is also worth noting that we have found 4 warning signs for Vamos Locação de Caminhões Máquinas e Equipamentos (1 is a bit concerning!) that you need to take into consideration.
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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.