Analysts' Revenue Estimates For Vivara Participações S.A. (BVMF:VIVA3) Are Surging Higher

Vivara Participações S.A. (BVMF:VIVA3) shareholders will have a reason to smile today, with the analysts making substantial upgrades to next year's statutory forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects.

Following the upgrade, the most recent consensus for Vivara Participações from its three analysts is for revenues of R$1.6b in 2021 which, if met, would be a sizeable 57% increase on its sales over the past 12 months. Statutory earnings per share are supposed to tumble 36% to R$0.99 in the same period. Previously, the analysts had been modelling revenues of R$1.4b and earnings per share (EPS) of R$0.99 in 2021. 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.

View our latest analysis for Vivara Participações

Analysts increased their price target 9.1% to R$28.00, perhaps signalling that higher revenues are a strong leading indicator for Vivara Participações's valuation. 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 Vivara Participações analyst has a price target of R$34.00 per share, while the most pessimistic values it at R$23.00. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Vivara Participações shareholders.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Vivara Participações' past performance and to peers in the same industry. It's clear from the latest estimates that Vivara Participações' rate of growth is expected to accelerate meaningfully, with the forecast 57% revenue growth noticeably faster than its historical growth of 5.4% p.a. over the past three years. Compare this with other companies in the same industry, which are forecast to grow their revenue 19% next year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Vivara Participações to grow faster than the wider industry.

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. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. There was also an increase in the price target, suggesting that there is more optimism baked into the forecasts than there was previously. Seeing the dramatic upgrade to next year's forecasts, it might be time to take another look at Vivara Participações.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Vivara Participações going out to 2023, 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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