Tecnoglass Inc. (NYSE:TGLS) last week reported its latest yearly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Tecnoglass reported in line with analyst predictions, delivering revenues of US$833m and statutory earnings per share of US$3.85, suggesting the business is executing well and in line with its plan. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Following the latest results, Tecnoglass' three analysts are now forecasting revenues of US$929.0m in 2024. This would be a notable 11% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to grow 11% to US$4.30. In the lead-up to this report, the analysts had been modelling revenues of US$915.3m and earnings per share (EPS) of US$4.24 in 2024. 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.
There were no changes to revenue or earnings estimates or the price target of US$50.40, suggesting that the company has met expectations in its recent result. 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 Tecnoglass, with the most bullish analyst valuing it at US$56.00 and the most bearish at US$45.00 per share. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Tecnoglass is an easy business to forecast or the the analysts are all using similar assumptions.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Tecnoglass' past performance and to peers in the same industry. We would highlight that Tecnoglass' revenue growth is expected to slow, with the forecast 11% annualised growth rate until the end of 2024 being well below the historical 19% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 5.3% per year. So it's pretty clear that, while Tecnoglass' revenue growth is expected to slow, it's still expected to grow faster than 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 major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at US$50.40, 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 Tecnoglass. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Tecnoglass analysts - going out to 2026, and you can see them free on our platform here.
Before you take the next step you should know about the 1 warning sign for Tecnoglass that we have uncovered.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.