Need To Know: Analysts Are Much More Bullish On EcoRodovias Infraestrutura e Logística S.A. (BVMF:ECOR3) Revenues

Celebrations may be in order for EcoRodovias Infraestrutura e Logística S.A. (BVMF:ECOR3) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The analysts have sharply increased their revenue numbers, with a view that EcoRodovias Infraestrutura e Logística will make substantially more sales than they'd previously expected.

Following the upgrade, the consensus from six analysts covering EcoRodovias Infraestrutura e Logística is for revenues of R$7.0b in 2024, implying a disturbing 26% decline in sales compared to the last 12 months. Per-share earnings are expected to leap 23% to R$1.22. Prior to this update, the analysts had been forecasting revenues of R$6.3b and earnings per share (EPS) of R$1.21 in 2024. It seems analyst sentiment has certainly become more bullish on revenues, even though they haven't changed their view on earnings per share.

See our latest analysis for EcoRodovias Infraestrutura e Logística

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. We would highlight that sales are expected to reverse, with a forecast 33% annualised revenue decline to the end of 2024. That is a notable change from historical growth of 20% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 7.1% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - EcoRodovias Infraestrutura e Logística is expected to lag the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with analysts reconfirming that earnings per share are expected to continue performing in line with their prior expectations. Fortunately, they also upgraded their revenue estimates, and are forecasting revenues to grow slower 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 EcoRodovias Infraestrutura e Logística.

Better yet, our automated discounted cash flow calculation (DCF) suggests EcoRodovias Infraestrutura e Logística could be moderately undervalued. You can learn more about our valuation methodology on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading 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.

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