Growth Investors: Industry Analysts Just Upgraded Their Três Tentos Agroindustrial S/A (BVMF:TTEN3) Revenue Forecasts By 13%

Três Tentos Agroindustrial S/A (BVMF:TTEN3) shareholders will have a reason to smile today, with the analysts making substantial upgrades to next year's statutory forecasts. The revenue forecast for next year has experienced a facelift, with analysts now much more optimistic on its sales pipeline. Três Tentos Agroindustrial S/A has also found favour with investors, with the stock up a notable 10% to R$10.04 over the past week. Could this upgrade be enough to drive the stock even higher?

After the upgrade, the five analysts covering Três Tentos Agroindustrial S/A are now predicting revenues of R$6.9b in 2022. If met, this would reflect a substantial 47% improvement in sales compared to the last 12 months. Per-share earnings are expected to leap 89% to R$1.43. Previously, the analysts had been modelling revenues of R$6.1b and earnings per share (EPS) of R$1.37 in 2022. Sentiment certainly seems to have improved in recent times, with a substantial gain in revenue and a small lift in earnings per share estimates.

View our latest analysis for Três Tentos Agroindustrial S/A

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Três Tentos Agroindustrial S/A's past performance and to peers in the same industry. The analysts are definitely expecting Três Tentos Agroindustrial S/A's growth to accelerate, with the forecast 36% annualised growth to the end of 2022 ranking favourably alongside historical growth of 23% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 4.3% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Três Tentos Agroindustrial S/A to grow faster than the wider industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts upgraded their earnings per share estimates for next year, expecting improving business conditions. They also upgraded their revenue estimates for next year, and sales are expected to grow faster than the wider market. Seeing the dramatic upgrade to next year's forecasts, it might be time to take another look at Três Tentos Agroindustrial S/A.

These earnings upgrades look like a sterling endorsement, but before diving in - you should know that we've spotted 2 potential warning sign with Três Tentos Agroindustrial S/A, including concerns around earnings quality. For more information, you can click through to our platform to learn more about this and the 1 other warning sign we've identified .

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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.