New Forecasts: Here's What Analysts Think The Future Holds For Auren Energia S.A. (BVMF:AURE3)

Shareholders in Auren Energia S.A. (BVMF:AURE3) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The analysts have sharply increased their revenue numbers, with a view that Auren Energia will make substantially more sales than they'd previously expected.

Following the upgrade, the consensus from eight analysts covering Auren Energia is for revenues of R$4.9b in 2023, implying a definite 15% decline in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing R$3.9b of revenue in 2023. The consensus has definitely become more optimistic, showing a sizeable gain to revenue forecasts.

Check out our latest analysis for Auren Energia

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. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 19% by the end of 2023. This indicates a significant reduction from annual growth of 86% over the last year. Yet aggregate analyst estimates for other companies in the industry suggest that industry revenues are forecast to decline 0.7% per year. The forecasts do look bearish for Auren Energia, since they're expecting it to shrink faster than the industry.

The Bottom Line

The highlight for us was that analysts increased their revenue forecasts for Auren Energia this year. They're also forecasting for revenues to shrink at a quicker rate than companies in 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 Auren Energia.

These earnings upgrades look like a sterling endorsement, but before diving in - you should know that we've spotted 3 potential risk with Auren Energia, including concerns around earnings quality. You can learn more, and discover the 1 other risk we've identified, for 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.