Celebrations may be in order for BR Properties S.A. (BVMF:BRPR3) 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 BR Properties will make substantially more sales than they'd previously expected.
Following the upgrade, the latest consensus from BR Properties' six analysts is for revenues of R$507m in 2021, which would reflect a substantial 60% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to expand 19% to R$0.51. Previously, the analysts had been modelling revenues of R$453m and earnings per share (EPS) of R$0.51 in 2021. There's clearly been a surge in bullishness around the company's sales pipeline, even if there's no real change in earnings per share forecasts.
Of course, another way to look at these forecasts is to place them into context against the industry itself. For example, we noticed that BR Properties' rate of growth is expected to accelerate meaningfully, with revenues forecast to grow 60%, well above its historical decline of 13% a year over the past five years. Compare this against analyst estimates for the wider industry, which suggest that (in aggregate) industry revenues are expected to grow 14% next year. Not only are BR Properties' revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.
The Bottom Line
The most obvious conclusion from this consensus update is that there's been no major change in the business' prospects in recent times, with analysts holding earnings per share steady, in line with previous estimates. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at BR Properties.
Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple BR Properties analysts - going out to 2025, and you can see them free on our platform here.
Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.
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