Positivo Tecnologia S.A. (BVMF:POSI3) Analysts Just Slashed This Year's Estimates

The analysts covering Positivo Tecnologia S.A. (BVMF:POSI3) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. Both revenue and earnings per share (EPS) estimates were cut sharply as analysts factored in the latest outlook for the business, concluding that they were too optimistic previously.

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After this downgrade, Positivo Tecnologia's three analysts are now forecasting revenues of R$3.8b in 2025. This would be a meaningful 11% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to surge 6,275% to R$1.34. Previously, the analysts had been modelling revenues of R$4.7b and earnings per share (EPS) of R$2.48 in 2025. Indeed, we can see that the analysts are a lot more bearish about Positivo Tecnologia's prospects, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.

See our latest analysis for Positivo Tecnologia

It'll come as no surprise then, to learn that the analysts have cut their price target 14% to R$9.03.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of Positivo Tecnologia'shistorical trends, as the 15% annualised revenue growth to the end of 2025 is roughly in line with the 13% annual revenue growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 6.6% per year. So although Positivo Tecnologia is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The biggest issue in the new estimates is that analysts have reduced their earnings per share estimates, suggesting business headwinds lay ahead for Positivo Tecnologia. Unfortunately, analysts also downgraded their revenue estimates, although our data indicates revenues are expected to perform better than the wider market. After such a stark change in sentiment from analysts, we'd understand if readers now felt a bit wary of Positivo Tecnologia.

So things certainly aren't looking great, and you should also know that we've spotted some potential warning signs with Positivo Tecnologia, including its declining profit margins. For more information, you can click here to discover this and the 3 other warning signs we've identified.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership.

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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.