Earnings Preview: Lavoro

Lavoro LVRO will release its quarterly earnings report on Thursday, 2024-10-31. Here's a brief overview for investors ahead of the announcement.

Analysts anticipate Lavoro to report an earnings per share (EPS) of $-0.34.

The market awaits Lavoro's announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter.

It's important for new investors to understand that guidance can be a significant driver of stock prices.

Performance in Previous Earnings

Last quarter the company missed EPS by $0.52, which was followed by a 13.76% drop in the share price the next day.

Here's a look at Lavoro's past performance and the resulting price change:

Analyst Insights on Lavoro

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Lavoro.

A total of 1 analyst ratings have been received for Lavoro, with the consensus rating being Outperform. The average one-year price target stands at $7.0, suggesting a potential 67.46% upside.

Comparing Ratings with Competitors

In this analysis, we delve into the analyst ratings and average 1-year price targets of and Karat Packaging, three key industry players, offering insights into their relative performance expectations and market positioning.

• Analysts currently favor an Neutral trajectory for Karat Packaging, with an average 1-year price target of $28.0, suggesting a potential 569.86% upside.

Key Findings: Peer Analysis Summary

The peer analysis summary provides a snapshot of key metrics for and Karat Packaging, illuminating their respective standings within the industry. These metrics offer valuable insights into their market positions and comparative performance.

Key Takeaway:

Lavoro ranks higher in Revenue Growth compared to its peers. However, it lags behind in Gross Profit and Return on Equity. Overall, Lavoro is positioned in the middle among its peers based on the provided metrics.

Get to Know Lavoro Better

Lavoro Ltd operates in the agricultural inputs retail market, with operations spread across Brazil and Colombia, and an emergent agricultural input trading company in Uruguay. The reportable segments of the company include the Brazil Cluster, which comprises companies dedicated to the distribution of agricultural inputs such as crop protection, seeds, fertilizers and specialty products, in Brazil; the LATAM Cluster, which includes companies dedicated to the distribution of agricultural inputs outside Brazil (predominantly in Colombia); and the Crop Care Cluster. A substantial part of the company's overall revenue is generated from its Brazil cluster segment.

Financial Insights: Lavoro

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

Positive Revenue Trend: Examining Lavoro's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 0.78% as of 31 March, 2024, showcasing a substantial increase in top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Industrials sector.

Net Margin: Lavoro's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of -11.5%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Lavoro's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of -17.82%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): Lavoro's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of -2.74%, the company may face hurdles in achieving optimal financial returns.

Debt Management: Lavoro's debt-to-equity ratio is below the industry average. With a ratio of 1.29, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

To track all earnings releases for Lavoro visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.