What Does The Future Hold For EZTEC Empreendimentos e Participações S.A. (BVMF:EZTC3)? These Analysts Have Been Cutting Their Estimates

The analysts covering EZTEC Empreendimentos e Participações S.A. (BVMF:EZTC3) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory 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. The stock price has risen 5.5% to R$31.25 over the past week. We'd be curious to see if the downgrade is enough to reverse investor sentiment on the business.

After this downgrade, EZTEC Empreendimentos e Participações' seven analysts are now forecasting revenues of R$1.4b in 2021. This would be a huge 57% improvement in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of R$1.6b in 2021. It looks like forecasts have become a fair bit less optimistic on EZTEC Empreendimentos e Participações, given the substantial drop in revenue estimates.

Check out our latest analysis for EZTEC Empreendimentos e Participações

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the EZTEC Empreendimentos e Participações' past performance and to peers in the same industry. The analysts are definitely expecting EZTEC Empreendimentos e Participações' growth to accelerate, with the forecast 83% annualised growth to the end of 2021 ranking favourably alongside historical growth of 5.6% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 12% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect EZTEC Empreendimentos e Participações to grow faster than the wider industry.

The Bottom Line

The clear low-light was that analysts slashing their revenue forecasts for EZTEC Empreendimentos e Participações this year. They're also forecasting more rapid revenue growth 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.

Need some more information? At least one of EZTEC Empreendimentos e Participações' seven analysts has provided estimates out to 2025, which can be seen for 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 that insiders are buying.

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