Industry Analysts Just Upgraded Their Companhia de Saneamento Básico do Estado de São Paulo - SABESP (BVMF:SBSP3) Revenue Forecasts By 15%

Companhia de Saneamento Básico do Estado de São Paulo - SABESP (BVMF:SBSP3) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The analysts have sharply increased their revenue numbers, with a view that Companhia de Saneamento Básico do Estado de São Paulo - SABESP will make substantially more sales than they'd previously expected.

Following the upgrade, the latest consensus from Companhia de Saneamento Básico do Estado de São Paulo - SABESP's eleven analysts is for revenues of R$22b in 2022, which would reflect a satisfactory 7.5% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to shoot up 25% to R$4.45. Before this latest update, the analysts had been forecasting revenues of R$19b and earnings per share (EPS) of R$4.16 in 2022. The forecasts seem more optimistic now, with a solid increase in revenue and a small lift in earnings per share estimates.

See our latest analysis for Companhia de Saneamento Básico do Estado de São Paulo - SABESP

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. It's clear from the latest estimates that Companhia de Saneamento Básico do Estado de São Paulo - SABESP's rate of growth is expected to accelerate meaningfully, with the forecast 16% annualised revenue growth to the end of 2022 noticeably faster than its historical growth of 6.9% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.2% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Companhia de Saneamento Básico do Estado de São Paulo - SABESP is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts upgraded their earnings per share estimates for this year, expecting improving business conditions. They also upgraded their revenue estimates for this year, and sales are expected to grow faster 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 Companhia de Saneamento Básico do Estado de São Paulo - SABESP.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Companhia de Saneamento Básico do Estado de São Paulo - SABESP analysts - going out to 2024, and you can see them free on our platform here.

You can also see our analysis of Companhia de Saneamento Básico do Estado de São Paulo - SABESP's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.