Sociedad Química y Minera de Chile S.A. (NYSE:SQM) last week reported its latest quarterly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Results overall were not great, with earnings of US$0.75 per share falling drastically short of analyst expectations. Meanwhile revenues hit US$1.3b and were slightly better than forecasts. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Sociedad Química y Minera de Chile after the latest results.

See our latest analysis for Sociedad Química y Minera de Chile

Taking into account the latest results, the current consensus, from the 17 analysts covering Sociedad Química y Minera de Chile, is for revenues of US$4.76b in 2024. This implies an uncomfortable 14% reduction in Sociedad Química y Minera de Chile's revenue over the past 12 months. Per-share earnings are expected to leap 1,253% to US$1.26. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$5.07b and earnings per share (EPS) of US$4.55 in 2024. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a large cut to earnings per share estimates.

The analysts made no major changes to their price target of US$58.31, suggesting the downgrades are not expected to have a long-term impact on Sociedad Química y Minera de Chile's valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Sociedad Química y Minera de Chile at US$85.00 per share, while the most bearish prices it at US$35.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Sociedad Química y Minera de Chile's past performance and to peers in the same industry. We would highlight that revenue is expected to reverse, with a forecast 26% annualised decline to the end of 2024. That is a notable change from historical growth of 35% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 4.8% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Sociedad Química y Minera de Chile is expected to lag the wider industry.

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. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Sociedad Química y Minera de Chile going out to 2026, and you can see them free on our platform here.

You still need to take note of risks, for example - Sociedad Química y Minera de Chile has 3 warning signs (and 1 which is significant) we think you should know about.

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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.