Industry Analysts Just Made A Captivating Upgrade To Their Even Construtora e Incorporadora S.A. (BVMF:EVEN3) Revenue Forecasts

Celebrations may be in order for Even Construtora e Incorporadora S.A. (BVMF:EVEN3) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects.

Following the upgrade, the latest consensus from Even Construtora e Incorporadora's six analysts is for revenues of R$2.3b in 2022, which would reflect a reasonable 2.4% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to rise 3.8% to R$0.85. Before this latest update, the analysts had been forecasting revenues of R$2.0b and earnings per share (EPS) of R$0.83 in 2022. There's clearly been a surge in bullishness around the company's sales pipeline, even if there's no real change in earnings per share forecasts.

Check out our latest analysis for Even Construtora e Incorporadora

Even though revenue forecasts increased, there was no change to the consensus price target of R$7.85, suggesting the analysts are focused on earnings as the driver of value creation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Even Construtora e Incorporadora analyst has a price target of R$10.00 per share, while the most pessimistic values it at R$5.00. This is a fairly broad spread of estimates, suggesting that the 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 Even Construtora e Incorporadora's past performance and to peers in the same industry. We would highlight that Even Construtora e Incorporadora's revenue growth is expected to slow, with the forecast 4.9% annualised growth rate until the end of 2022 being well below the historical 9.6% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 10% per year. Factoring in the forecast slowdown in growth, it seems obvious that Even Construtora e Incorporadora is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with analysts reconfirming that earnings per share are expected to continue performing in line with their prior expectations. Pleasantly, analysts also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow slower than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Even Construtora e Incorporadora.

Analysts are clearly in love with Even Construtora e Incorporadora at the moment, but before diving in - you should be aware that we've identified some warning flags with the business, such as concerns around earnings quality. You can learn more, and discover the 2 other warning signs we've identified, for free on our platform here.

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 that insiders are buying.

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.