Downgrade: Here's How Analysts See Diagnósticos da América S.A. (BVMF:DASA3) Performing In The Near Term

One thing we could say about the analysts on Diagnósticos da América S.A. (BVMF:DASA3) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Revenue and earnings per share (EPS) forecasts were both revised downwards, with analysts seeing grey clouds on the horizon.

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Following the latest downgrade, the current consensus, from the five analysts covering Diagnósticos da América, is for revenues of R$14b in 2025, which would reflect a small 2.2% reduction in Diagnósticos da América's sales over the past 12 months. The loss per share is anticipated to greatly reduce in the near future, narrowing 21% to R$0.76. However, before this estimates update, the consensus had been expecting revenues of R$16b and R$0.34 per share in losses. So there's been quite a change-up of views after the recent consensus updates, with the analysts making a serious cut to their revenue forecasts while also expecting losses per share to increase.

View our latest analysis for Diagnósticos da América

There was no major change to the consensus price target of R$1.82, signalling that the business is performing roughly in line with expectations, despite lower earnings per share forecasts.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 4.3% by the end of 2025. This indicates a significant reduction from annual growth of 16% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 9.3% per year. It's pretty clear that Diagnósticos da América's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to take away is that analysts increased their loss per share estimates for this year. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that Diagnósticos da América's revenues are expected to grow slower than the wider market. The lack of change in the price target is puzzling in light of the downgrade but, with a serious decline expected this year, we wouldn't be surprised if investors were a bit wary of Diagnósticos da América.

As you can see, the analysts clearly aren't bullish, and there might be good reason for that. We've identified some potential issues with Diagnósticos da América's financials, such as major dilution from new stock issuance in the past year. For more information, you can click here to discover 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.