Analysts Just Published A Bright New Outlook For Atenor SA's (EBR:ATEB)

Atenor SA (EBR:ATEB) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The consensus statutory numbers for both revenue and earnings per share (EPS) increased, with their view clearly much more bullish on the company's business prospects.

After the upgrade, the twin analysts covering Atenor are now predicting revenues of €281m in 2024. If met, this would reflect a substantial 37% improvement in sales compared to the last 12 months. Losses are expected to turn into profits real soon, with the analysts forecasting €0.26 in per-share earnings. Before this latest update, the analysts had been forecasting revenues of €173m and earnings per share (EPS) of €0.20 in 2024. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.

See our latest analysis for Atenor

As a result, it might be a surprise to see that the analysts have cut their price target 6.9% to €6.05, which could suggest the forecast improvement in performance is not expected to last.

Of course, another way to look at these forecasts is to place them into context against the industry itself. One thing stands out from these estimates, which is that Atenor is forecast to grow faster in the future than it has in the past, with revenues expected to display 37% annualised growth until the end of 2024. If achieved, this would be a much better result than the 3.3% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 6.0% annually. So it looks like Atenor is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for this year. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. The declining price target is a puzzle, but still - with a serious upgrade to this year's expectations, it might be time to take another look at Atenor.

These earnings upgrades look like a sterling endorsement, but before diving in - you should know that we've spotted 3 potential risk with Atenor, including major dilution from new stock issuance in the past year. For more information, you can click through to our platform to learn more about this and the 1 other risk we've identified .

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies backed by insiders.

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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.