These Analysts Think Grupo Gicsa S.A.B. de C.V.'s (BMV:GICSAB) Sales Are Under Threat

Market forces rained on the parade of Grupo Gicsa S.A.B. de C.V. (BMV:GICSAB) shareholders today, when the analysts downgraded their forecasts for this year. There was a fairly draconian cut to their revenue estimates, perhaps an implicit admission that previous forecasts were much too optimistic.

Following the downgrade, the most recent consensus for Grupo Gicsa. de from its dual analysts is for revenues of Mex$4.7b in 2022 which, if met, would be a meaningful 12% increase on its sales over the past 12 months. Before the latest update, the analysts were foreseeing Mex$5.3b of revenue in 2022. The consensus view seems to have become more pessimistic on Grupo Gicsa. de, noting the substantial drop in revenue estimates in this update.

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. One thing stands out from these estimates, which is that Grupo Gicsa. de is forecast to grow faster in the future than it has in the past, with revenues expected to display 16% annualised growth until the end of 2022. If achieved, this would be a much better result than the 1.2% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 12% annually. So it looks like Grupo Gicsa. de is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The clear low-light was that analysts slashing their revenue forecasts for Grupo Gicsa. de 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 Grupo Gicsa. de going forwards.

That said, the analysts might have good reason to be negative on Grupo Gicsa. de, given its declining profit margins. For more information, you can click here to discover this and the 1 other risk we've identified.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.