Swiss Prime Site AG (VTX:SPSN) Analysts Just Trimmed Their Revenue Forecasts By 11%

One thing we could say about the analysts on Swiss Prime Site AG (VTX:SPSN) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.

Following the downgrade, the consensus from five analysts covering Swiss Prime Site is for revenues of CHF618m in 2024, implying a noticeable 7.5% decline in sales compared to the last 12 months. Per-share earnings are expected to soar 139% to CHF2.70. Previously, the analysts had been modelling revenues of CHF695m and earnings per share (EPS) of CHF2.82 in 2024. It looks like analyst sentiment has fallen somewhat in this update, with a substantial drop in revenue estimates and a small dip in earnings per share numbers as well.

See our latest analysis for Swiss Prime Site

Analysts made no major changes to their price target of CHF91.83, suggesting the downgrades are not expected to have a long-term impact on Swiss Prime Site's valuation.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would also point out that the forecast 7.5% annualised revenue decline to the end of 2024 is better than the historical trend, which saw revenues shrink 15% annually over the past five years By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue shrink 5.8% per year. While this is interesting, Swiss Prime Site's, revenues are still expected to shrink next year, and at a faster rate than the wider industry.

The Bottom Line

The biggest issue in the new estimates is that analysts have reduced their earnings per share estimates, suggesting business headwinds lay ahead for Swiss Prime Site. Unfortunately they also downgraded their revenue estimates, and our aggregation of analyst estimates suggests that Swiss Prime Site revenue is expected to perform worse than the wider market. Overall, given the drastic downgrade to this year's forecasts, we'd be feeling a little more wary of Swiss Prime Site going forwards.

After a downgrade like this, it's pretty clear that previous forecasts were too optimistic. What's more, we've spotted several possible issues with Swiss Prime Site's business, like its declining profit margins. For more information, you can click here to discover this and the 3 other warning signs 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.