HIAG Immobilien Holding AG (VTX:HIAG) Analysts Are Reducing Their Forecasts For This Year

The analysts covering HIAG Immobilien Holding AG (VTX:HIAG) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. Revenue and earnings per share (EPS) forecasts were both revised downwards, with the analysts seeing grey clouds on the horizon.

Following the latest downgrade, the current consensus, from the twin analysts covering HIAG Immobilien Holding, is for revenues of CHF106m in 2023, which would reflect an uncomfortable 15% reduction in HIAG Immobilien Holding's sales over the past 12 months. Statutory earnings per share are anticipated to dive 50% to CHF3.22 in the same period. Prior to this update, the analysts had been forecasting revenues of CHF122m and earnings per share (EPS) of CHF3.64 in 2023. Indeed, we can see that the analysts are a lot more bearish about HIAG Immobilien Holding's prospects, administering a measurable cut to revenue estimates and slashing their EPS estimates to boot.

See our latest analysis for HIAG Immobilien Holding

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 28% annualised revenue decline to the end of 2023. That is a notable change from historical growth of 14% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue decline 7.3% annually for the foreseeable future. The forecasts do look bearish for HIAG Immobilien Holding, since they're expecting it to shrink faster than the industry.

The Bottom Line

The most important thing to take away is that analysts cut their earnings per share estimates, expecting a clear decline in business conditions. Unfortunately they also cut their revenue estimates for this year, and they expect sales to lag the wider market. That said, earnings per share are more important for creating value for shareholders. Given the serious cut to this year's outlook, it's clear that analysts have turned more bearish on HIAG Immobilien Holding, and we wouldn't blame shareholders for feeling a little more cautious themselves.

As you can see, the analysts clearly aren't bullish, and there might be good reason for that. We've identified some potential issues with HIAG Immobilien Holding's financials, such as its declining profit margins. For more information, you can click here to discover this and the 3 other concerns we've identified.

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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.