Time To Worry? Analysts Just Downgraded Their Hoteles City Express, S.A.B. de C.V. (BMV:HCITY) Outlook

Today is shaping up negative for Hoteles City Express, S.A.B. de C.V. (BMV:HCITY) shareholders, with the analysts delivering a substantial negative revision to this year's forecasts. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.

After this downgrade, Hoteles City Express. de's twin analysts are now forecasting revenues of Mex$2.2b in 2021. This would be a substantial 82% improvement in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing Mex$2.7b of revenue in 2021. It looks like forecasts have become a fair bit less optimistic on Hoteles City Express. de, given the measurable cut to revenue estimates.

Check out our latest analysis for Hoteles City Express. de

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's clear from the latest estimates that Hoteles City Express. de's rate of growth is expected to accelerate meaningfully, with the forecast 82% annualised revenue growth to the end of 2021 noticeably faster than its historical growth of 1.8% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 22% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Hoteles City Express. de is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that analysts cut their revenue estimates for this year. Analysts also expect revenues to grow faster than the wider market. Overall, given the drastic downgrade to this year's forecasts, we'd be feeling a little more wary of Hoteles City Express. de going forwards.

Thirsting for more data? We have estimates for Hoteles City Express. de from its twin analysts out until 2023, 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 that insiders are buying.

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