Meyer Burger Technology AG (VTX:MBTN) Analysts Just Cut Their EPS Forecasts Substantially

The analysts covering Meyer Burger Technology AG (VTX:MBTN) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. Both revenue and earnings per share (EPS) estimates were cut sharply as the analysts factored in the latest outlook for the business, concluding that they were too optimistic previously.

After the downgrade, the three analysts covering Meyer Burger Technology are now predicting revenues of CHF97m in 2024. If met, this would reflect a decent 13% improvement in sales compared to the last 12 months. The loss per share is anticipated to greatly reduce in the near future, narrowing 58% to CHF7.37. However, before this estimates update, the consensus had been expecting revenues of CHF164m and CHF5.81 per share in losses. Ergo, there's been a clear change in sentiment, with the analysts administering a notable cut to this year's revenue estimates, while at the same time increasing their loss per share forecasts.

See our latest analysis for Meyer Burger Technology

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. For example, we noticed that Meyer Burger Technology's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 27% growth to the end of 2024 on an annualised basis. That is well above its historical decline of 17% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 12% annually. Not only are Meyer Burger Technology's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that analysts increased their loss per share estimates for this year. While analysts did downgrade their revenue estimates, these forecasts still imply revenues will perform better than the wider market. Given the serious cut to this year's outlook, it's clear that analysts have turned more bearish on Meyer Burger Technology, and we wouldn't blame shareholders for feeling a little more cautious themselves.

So things certainly aren't looking great, and you should also know that we've spotted some potential warning signs with Meyer Burger Technology, including major dilution from new stock issuance in the past year. Learn more, and discover the 2 other concerns we've identified, for free on our platform here.

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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.