These Analysts Think Enauta Participações S.A.'s (BVMF:ENAT3) Sales Are Under Threat

The analysts covering Enauta Participações S.A. (BVMF:ENAT3) 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.

Following the downgrade, the most recent consensus for Enauta Participações from its five analysts is for revenues of R$2.1b in 2023 which, if met, would be an okay 6.2% increase on its sales over the past 12 months. Before the latest update, the analysts were foreseeing R$2.5b of revenue in 2023. The consensus view seems to have become more pessimistic on Enauta Participações, noting the substantial drop in revenue estimates in this update.

View our latest analysis for Enauta Participações

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that Enauta Participações' revenue growth will slow down substantially, with revenues to the end of 2023 expected to display 8.3% growth on an annualised basis. This is compared to a historical growth rate of 27% over the past five years. Compare this with other companies in the same industry, which are forecast to see a revenue decline of 2.9% annually. So it's clear that despite the slowdown in growth, Enauta Participações is still expected to grow meaningfully faster than the wider industry.

The Bottom Line

The clear low-light was that analysts slashing their revenue forecasts for Enauta Participações this year. They're also forecasting for revenues to perform better than companies in the wider market. Given the stark change in sentiment, we'd understand if investors became more cautious on Enauta Participações after today.

So things certainly aren't looking great, and you should also know that we've spotted some potential warning signs with Enauta Participações, including its declining profit margins. For more information, you can click here to discover this and the 1 other risk we've identified.

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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