These Analysts Think Oncoclínicas do Brasil Serviços Médicos S.A.'s (BVMF:ONCO3) Sales Are Under Threat

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Market forces rained on the parade of Oncoclínicas do Brasil Serviços Médicos S.A. (BVMF:ONCO3) shareholders today, when the analysts downgraded their forecasts for this year. Revenue estimates were cut sharply as the analysts signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well.

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After the downgrade, the consensus from Oncoclínicas do Brasil Serviços Médicos' eight analysts is for revenues of R$6.1b in 2025, which would reflect a discernible 3.3% decline in sales compared to the last year of performance. Prior to the latest estimates, the analysts were forecasting revenues of R$6.7b in 2025. It looks like forecasts have become a fair bit less optimistic on Oncoclínicas do Brasil Serviços Médicos, given the measurable cut to revenue estimates.

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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. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 6.6% by the end of 2025. This indicates a significant reduction from annual growth of 24% over the last three years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 10.0% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Oncoclínicas do Brasil Serviços Médicos is expected to lag the wider industry.

The Bottom Line

The most important thing to take away is that analysts cut their revenue estimates for this year. They're also anticipating slower revenue growth than the wider market. Overall, given the drastic downgrade to this year's forecasts, we'd be feeling a little more wary of Oncoclínicas do Brasil Serviços Médicos going forwards.

Of course, there's always more to the story. At least one of Oncoclínicas do Brasil Serviços Médicos' eight analysts has provided estimates out to 2027, which can be seen for free on our platform here.

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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.