What Does The Future Hold For Sinqia S.A. (BVMF:SQIA3)? These Analysts Have Been Cutting Their Estimates

The analysts covering Sinqia S.A. (BVMF:SQIA3) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. There was a fairly draconian cut to their revenue estimates, perhaps an implicit admission that previous forecasts were much too optimistic.

After this downgrade, Sinqia's six analysts are now forecasting revenues of R$436m in 2022. This would be a sizeable 24% improvement in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing R$542m of revenue in 2022. It looks like forecasts have become a fair bit less optimistic on Sinqia, given the measurable cut to revenue estimates.

See our latest analysis for Sinqia

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Sinqia's growth to accelerate, with the forecast 33% annualised growth to the end of 2022 ranking favourably alongside historical growth of 23% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 14% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Sinqia to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that analysts cut their revenue estimates for 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 Sinqia going forwards.

Want more information? We have estimates for Sinqia from its six analysts out until 2024, 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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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.