Time To Worry? Analysts Just Downgraded Their ClearSale S.A. (BVMF:CLSA3) Outlook

Today is shaping up negative for ClearSale S.A. (BVMF:CLSA3) shareholders, with the analysts delivering a substantial negative revision to this year's forecasts. 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 downgrade, the current consensus from ClearSale's four analysts is for revenues of R$629m in 2023 which - if met - would reflect a notable 18% increase on its sales over the past 12 months. Before the latest update, the analysts were foreseeing R$701m of revenue in 2023. The consensus view seems to have become more pessimistic on ClearSale, noting the substantial drop in revenue estimates in this update.

View our latest analysis for ClearSale

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. It's clear from the latest estimates that ClearSale's rate of growth is expected to accelerate meaningfully, with the forecast 40% annualised revenue growth to the end of 2023 noticeably faster than its historical growth of 12% over the past year. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 12% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect ClearSale to grow faster than the wider industry.

The Bottom Line

The clear low-light was that analysts slashing their revenue forecasts for ClearSale this year. They're also forecasting more rapid 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 ClearSale going forwards.

Of course, there's always more to the story. At least one of ClearSale's four analysts has provided estimates out to 2025, which can be seen for 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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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.