Analysts Have Just Cut Their Bemobi Mobile Tech S.A. (BVMF:BMOB3) Revenue Estimates By 24%

Market forces rained on the parade of Bemobi Mobile Tech S.A. (BVMF:BMOB3) 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.

Following the latest downgrade, the current consensus, from the two analysts covering Bemobi Mobile Tech, is for revenues of R$594m in 2024, which would reflect a concerning 55% reduction in Bemobi Mobile Tech's sales over the past 12 months. Per-share earnings are expected to expand 13% to R$1.13. Before this latest update, the analysts had been forecasting revenues of R$786m and earnings per share (EPS) of R$1.20 in 2024. It looks like analyst sentiment has fallen somewhat in this update, with a sizeable cut to revenue estimates and a small dip in earnings per share numbers as well.

Check out our latest analysis for Bemobi Mobile Tech

Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 55% by the end of 2024. This indicates a significant reduction from annual growth of 45% 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 8.6% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Bemobi Mobile Tech is expected to lag the wider industry.

The Bottom Line

The biggest issue in the new estimates is that analysts have reduced their earnings per share estimates, suggesting business headwinds lay ahead for Bemobi Mobile Tech. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that Bemobi Mobile Tech's revenues are expected to grow slower than the wider market. Given the stark change in sentiment, we'd understand if investors became more cautious on Bemobi Mobile Tech after today.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At least one analyst has provided forecasts out to 2026, which can be seen 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 downgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.

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