This Broker Just Slashed Their Green Impact Partners Inc. (CVE:GIP) Earnings Forecasts

Market forces rained on the parade of Green Impact Partners Inc. (CVE:GIP) shareholders today, when the covering analyst downgraded their forecasts for next year. Revenue and earnings per share (EPS) forecasts were both revised downwards, with the analyst seeing grey clouds on the horizon.

After the downgrade, the consensus from Green Impact Partners' sole analyst is for revenues of CA$146m in 2025, which would reflect a small 7.6% decline in sales compared to the last year of performance. Losses are predicted to fall substantially, shrinking 66% to CA$0.29 per share. Yet prior to the latest estimates, the analyst had been forecasting revenues of CA$163m and losses of CA$0.09 per share in 2025. So there's been quite a change-up of views after the recent consensus updates, with the analyst making a serious cut to their revenue forecasts while also expecting losses per share to increase.

Check out our latest analysis for Green Impact Partners

The consensus price target fell 22% to CA$7.00, implicitly signalling that lower earnings per share are a leading indicator for Green Impact Partners' valuation.

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 6.1% annualised revenue decline to the end of 2025. That is a notable change from historical growth of 5.9% over the last three years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 3.1% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Green Impact Partners is expected to lag the wider industry.

The Bottom Line

The most important thing to take away is that the analyst increased their loss per share estimates for next year. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. After such a stark change in sentiment from the analyst, we'd understand if readers now felt a bit wary of Green Impact Partners.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At least one analyst has provided forecasts out to 2025, 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 backed by insiders.

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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.