Broker Revenue Forecasts For Auren Energia S.A. (BVMF:AURE3) Are Surging Higher

Auren Energia S.A. (BVMF:AURE3) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's 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 consensus from five analysts covering Auren Energia is for revenues of R$4.3b in 2024, implying a disturbing 30% decline in sales compared to the last 12 months. Losses are expected to turn into profits real soon, with the analysts forecasting R$0.54 in per-share earnings. Prior to this update, the analysts had been forecasting revenues of R$3.9b and earnings per share (EPS) of R$0.56 in 2024. While revenue forecasts have increased, the analysts if anything seem a little more pessimistic, given the minor downgrade to earnings per share estimates in this update.

See our latest analysis for Auren Energia

The consensus price target was unchanged at R$15.19, suggesting the business is performing roughly in line with expectations, despite some adjustments to profit and revenue forecasts.

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 30% annualised revenue decline to the end of 2024. That is a notable change from historical growth of 32% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue decline 3.4% annually for the foreseeable future. The forecasts do look bearish for Auren Energia, since they're expecting it to shrink faster than the industry.

The Bottom Line

The most important thing to take away is that analysts cut their earnings per share estimates, expecting a clear decline in business conditions. They also upgraded their revenue estimates, with sales apparently performing well even though revenue growth expected to decline against the wider market this year. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Auren Energia.

Still, the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Auren Energia going out to 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 upgrading their estimates. So you may also wish to search this free list of stocks 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.