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

The latest analyst coverage could presage a bad day for Enauta Participações S.A. (BVMF:ENAT3), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. 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$3.7b in 2024 which, if met, would be a substantial 113% increase on its sales over the past 12 months. Statutory earnings per share are presumed to soar 3,585% to R$6.34. Before this latest update, the analysts had been forecasting revenues of R$4.2b and earnings per share (EPS) of R$6.44 in 2024. So there's been a clear change in analyst sentiment in the recent update, with the analysts making a substantial drop in revenues and reconfirming their earnings per share estimates.

Check out our latest analysis for Enauta Participações

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Enauta Participações' past performance and to peers in the same industry. The analysts are definitely expecting Enauta Participações' growth to accelerate, with the forecast 174% annualised growth to the end of 2024 ranking favourably alongside historical growth of 16% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 0.02% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Enauta 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. While analysts did downgrade their revenue estimates, these forecasts still imply revenues will perform better than the wider market. Often, one downgrade can set off a daisy-chain of cuts, especially if an industry is in decline. So we wouldn't be surprised if the market became a lot more cautious on Enauta Participações after today.

Still, the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Enauta Participações going out to 2026, and you can see them 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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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.