Analysts Just Made A Major Revision To Their Grupo Gicsa, S.A. de C.V. (BMV:GICSAB) Revenue Forecasts

The analysts covering Grupo Gicsa, S.A. de C.V. (BMV:GICSAB) 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.

Following the latest downgrade, the current consensus, from the three analysts covering Grupo Gicsa de, is for revenues of Mex$3.7b in 2021, which would reflect a not inconsiderable 19% reduction in Grupo Gicsa de's sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of Mex$4.2b in 2021. It looks like forecasts have become a fair bit less optimistic on Grupo Gicsa de, given the substantial drop in revenue estimates.

View our latest analysis for Grupo Gicsa 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. We would highlight that sales are expected to reverse, with a forecast 19% annualised revenue decline to the end of 2021. That is a notable change from historical growth of 4.4% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 14% annually for the foreseeable future. It's pretty clear that Grupo Gicsa de's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The clear low-light was that analysts slashing their revenue forecasts for Grupo Gicsa de this year. They're also anticipating slower revenue growth than the wider market. Overall, given the drastic downgrade to this year's forecasts, we'd be feeling a little more wary of Grupo Gicsa de going forwards.

Looking for more information? We have estimates for Grupo Gicsa de from its three 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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