These Analysts Think Hidrovias do Brasil S.A.'s (BVMF:HBSA3) Sales Are Under Threat

The analysts covering Hidrovias do Brasil S.A. (BVMF:HBSA3) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. Revenue estimates were cut sharply as the analysts signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well.

After this downgrade, Hidrovias do Brasil's six analysts are now forecasting revenues of R$2.0b in 2024. This would be a notable 20% improvement in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing R$2.4b of revenue in 2024. It looks like forecasts have become a fair bit less optimistic on Hidrovias do Brasil, given the substantial drop in revenue estimates.

View our latest analysis for Hidrovias do Brasil

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 Hidrovias do Brasil's growth to accelerate, with the forecast 43% annualised growth to the end of 2024 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 0.5% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Hidrovias do Brasil is expected to grow much faster than its industry.

The Bottom Line

The clear low-light was that analysts slashing their revenue forecasts for Hidrovias do Brasil this year. Analysts also expect revenues to grow faster than the wider market. Often, one downgrade can set off a daisy-chain of cuts, especially if an industry is in decline. So we wouldn't be surprised if the market became a lot more cautious on Hidrovias do Brasil after today.

Hungry for more information? We have estimates for Hidrovias do Brasil from its six analysts out until 2026, and you can see them free 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 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.