Broker Revenue Forecasts For Locaweb Serviços de Internet S.A. (BVMF:LWSA3) Are Surging Higher

Locaweb Serviços de Internet S.A. (BVMF:LWSA3) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects.

Following the upgrade, the latest consensus from Locaweb Serviços de Internet's five analysts is for revenues of R$693m in 2021, which would reflect a major 42% improvement in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of R$629m in 2021. The consensus has definitely become more optimistic, showing a nice increase in revenue forecasts.

View our latest analysis for Locaweb Serviços de Internet

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The analysts are definitely expecting Locaweb Serviços de Internet's growth to accelerate, with the forecast 42% annualised growth to the end of 2021 ranking favourably alongside historical growth of 12% per annum over the past five years. 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. Factoring in the forecast acceleration in revenue, it's pretty clear that Locaweb Serviços de Internet is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts lifted their revenue estimates for this year. They're also forecasting more rapid revenue growth than the wider market. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Locaweb Serviços de Internet.

Unsatisfied? We have analyst estimates for Locaweb Serviços de Internet going out to 2025, and you can see them free on our platform here.

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