Mobly S.A. (BVMF:MBLY3) Analysts Just Trimmed Their Revenue Forecasts By 11%

Today is shaping up negative for Mobly S.A. (BVMF:MBLY3) shareholders, with the analysts delivering a substantial negative revision to this year's forecasts. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative. The stock price has risen 8.9% to R$6.00 over the past week. It will be interesting to see if this downgrade motivates investors to start selling their holdings.

Following the downgrade, the current consensus from Mobly's three analysts is for revenues of R$845m in 2022 which - if met - would reflect a notable 17% increase on its sales over the past 12 months. Losses are expected to be contained, narrowing 17% from last year to R$0.66. However, before this estimates update, the consensus had been expecting revenues of R$951m and R$0.64 per share in losses. Ergo, there's been a clear change in sentiment, with the analysts administering a notable cut to this year's revenue estimates, while at the same time increasing their loss per share forecasts.

View our latest analysis for Mobly

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Mobly's revenue growth is expected to slow, with the forecast 17% annualised growth rate until the end of 2022 being well below the historical 26% p.a. growth over the last three years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 22% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Mobly.

The Bottom Line

The most important thing to note from this downgrade is that the consensus increased its forecast losses this year, suggesting all may not be well at Mobly. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that Mobly's revenues are expected to grow slower than the wider market. Overall, given the drastic downgrade to this year's forecasts, we'd be feeling a little more wary of Mobly going forwards.

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 Mobly's financials, such as a short cash runway. For more information, you can click here to discover this and the 2 other risks we've identified.

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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