Analysts Have Just Cut Their EZTEC Empreendimentos e Participações S.A. (BVMF:EZTC3) Revenue Estimates By 8.1%

The latest analyst coverage could presage a bad day for EZTEC Empreendimentos e Participações S.A. (BVMF:EZTC3), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.

Following the downgrade, the most recent consensus for EZTEC Empreendimentos e Participações from its seven analysts is for revenues of R$1.4b in 2022 which, if met, would be a major 46% increase on its sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of R$1.5b in 2022. The forecasts seem less optimistic overall, with the slight decrease in revenue estimates in the latest consensus update.

View our latest analysis for EZTEC Empreendimentos e Participações

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's clear from the latest estimates that EZTEC Empreendimentos e Participações' rate of growth is expected to accelerate meaningfully, with the forecast 46% annualised revenue growth to the end of 2022 noticeably faster than its historical growth of 9.5% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 10% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that EZTEC Empreendimentos e Participações is expected to grow much faster than its industry.

The Bottom Line

The clear low-light was that analysts slashing their revenue forecasts for EZTEC Empreendimentos e Participações this year. The analysts also expect revenues to grow faster than the wider market. Overall, given the drastic downgrade to this year's forecasts, we'd be feeling a little more wary of EZTEC Empreendimentos e Participações going forwards.

Of course, this isn't the full story. We have estimates for EZTEC Empreendimentos e Participações from its seven analysts out until 2024, and you can see them 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.

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