Need To Know: The Consensus Just Cut Its ACWA POWER Company (TADAWUL:2082) Estimates For 2022

Market forces rained on the parade of ACWA POWER Company (TADAWUL:2082) shareholders today, when the analysts downgraded their forecasts for this year. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.

After the downgrade, the consensus from ACWA POWER's three analysts is for revenues of ر.س4.3b in 2022, which would reflect a definite 18% decline in sales compared to the last year of performance. Prior to the latest estimates, the analysts were forecasting revenues of ر.س5.8b in 2022. It looks like forecasts have become a fair bit less optimistic on ACWA POWER, given the sizeable cut to revenue estimates.

View our latest analysis for ACWA POWER

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that sales are expected to reverse, with a forecast 33% annualised revenue decline to the end of 2022. That is a notable change from historical growth of 8.5% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 12% per year. It's pretty clear that ACWA POWER's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to take away is that analysts cut their revenue estimates for 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 ACWA POWER going forwards.

Still got questions? At least one of ACWA POWER's three analysts has provided estimates out to 2024, which can be seen 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.