Some Analysts Just Cut Their Atenor SA (EBR:ATEB) Estimates

Market forces rained on the parade of Atenor SA (EBR:ATEB) shareholders today, when the analysts downgraded their forecasts for this year. There was a fairly draconian cut to their revenue estimates, perhaps an implicit admission that previous forecasts were much too optimistic. At €3.05, shares are up 4.8% in the past 7 days. Investors could be forgiven for changing their mind on the business following the downgrade; but it's not clear if the revised forecasts will lead to selling activity.

After the downgrade, the consensus from Atenor's twin analysts is for revenues of €180m in 2025, which would reflect a painful 44% decline in sales compared to the last year of performance. Before the latest update, the analysts were foreseeing €229m of revenue in 2025. The consensus view seems to have become more pessimistic on Atenor, noting the sizeable cut to revenue estimates in this update.

View our latest analysis for Atenor

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Atenor's past performance and to peers in the same industry. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 44% by the end of 2025. This indicates a significant reduction from annual growth of 8.0% over the last five years. Yet aggregate analyst estimates for other companies in the industry suggest that industry revenues are forecast to decline 23% per year. The forecasts do look bearish for Atenor, since they're expecting it to shrink faster than the industry.

The Bottom Line

The most important thing to take away is that analysts cut their revenue estimates for this year. They're also forecasting for revenues to shrink at a quicker rate than companies in the wider market. Overall, given the drastic downgrade to this year's forecasts, we'd be feeling a little more wary of Atenor going forwards.

Still got questions? We have estimates for Atenor from its twin analysts out until 2027, and you can see them free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership.

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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.