These Analysts Think UBM Development AG's (VIE:UBS) Earnings Are Under Threat

One thing we could say about the analysts on UBM Development AG (VIE:UBS) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. There was a fairly draconian cut to their revenue estimates, perhaps an implicit admission that previous forecasts were much too optimistic. The stock price has risen 4.8% to €32.80 over the past week. It will be interesting to see if this downgrade motivates investors to start selling their holdings.

Following the latest downgrade, the four analysts covering UBM Development provided consensus estimates of €211m revenue in 2022, which would reflect a measurable 2.8% decline on its sales over the past 12 months. Before the latest update, the analysts were foreseeing €305m of revenue in 2022. It looks like forecasts have become a fair bit less optimistic on UBM Development, given the pretty serious reduction to revenue estimates.

View our latest analysis for UBM Development

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the UBM Development's past performance and to peers in the same industry. One thing that stands out from these estimates is that shrinking revenues are expected to moderate over the period ending 2022 compared to the historical decline of 17% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 1.2% per year. So while a broad number of companies are forecast to grow, unfortunately UBM Development is expected to see its sales affected worse than other companies in the industry.

The Bottom Line

The most important thing to take away is that analysts cut their revenue estimates for this year. They also expect company revenue to perform worse than the wider market. We wouldn't be surprised to find shareholders feeling a bit shell-shocked, after these downgrades. It looks like analysts have become a lot more bearish on UBM Development, and their negativity could be grounds for caution.

But wait - there's more! At least one of UBM Development's four analysts has provided estimates out to 2024, which can be seen for 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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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.