Growth Investors: Industry Analysts Just Upgraded Their 3R Petroleum Óleo e Gás S.A. (BVMF:RRRP3) Revenue Forecasts By 15%

Celebrations may be in order for 3R Petroleum Óleo e Gás S.A. (BVMF:RRRP3) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The analysts have sharply increased their revenue numbers, with a view that 3R Petroleum Óleo e Gás will make substantially more sales than they'd previously expected.

Following the upgrade, the latest consensus from 3R Petroleum Óleo e Gás' ten analysts is for revenues of R$5.0b in 2023, which would reflect a huge 112% improvement in sales compared to the last 12 months. Per-share earnings are expected to shoot up 56% to R$3.10. Previously, the analysts had been modelling revenues of R$4.4b and earnings per share (EPS) of R$3.10 in 2023. It seems analyst sentiment has certainly become more bullish on revenues, even though they haven't changed their view on earnings per share.

View our latest analysis for 3R Petroleum Óleo e Gás

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that 3R Petroleum Óleo e Gás' rate of growth is expected to accelerate meaningfully, with the forecast 3x annualised revenue growth to the end of 2023 noticeably faster than its historical growth of 81% p.a. over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue shrink 0.8% per year. So it's clear with the acceleration in growth, 3R Petroleum Óleo e Gás is expected to grow meaningfully 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. On the plus side, they also lifted their revenue estimates, and the company is expected to perform better than the wider market. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at 3R Petroleum Óleo e Gás.

Analysts are definitely bullish on 3R Petroleum Óleo e Gás, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including concerns around earnings quality. You can learn more, and discover the 1 other warning sign we've identified, 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 upgrading 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.