News Flash: 6 Analysts Think Meyer Burger Technology AG (VTX:MBTN) Earnings Are Under Threat

Market forces rained on the parade of Meyer Burger Technology AG (VTX:MBTN) shareholders today, when the analysts downgraded their 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 six analysts covering Meyer Burger Technology are now predicting revenues of CHF201m in 2022. If met, this would reflect a substantial 404% improvement in sales compared to the last 12 months. The loss per share is anticipated to greatly reduce in the near future, narrowing 39% to CHF0.023. Yet prior to the latest estimates, the analysts had been forecasting revenues of CHF224m and losses of CHF0.017 per share in 2022. So there's been quite a change-up of views after the recent consensus updates, with the analysts making a serious cut to their revenue forecasts while also expecting losses per share to increase.

See our latest analysis for Meyer Burger Technology

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. For example, we noticed that Meyer Burger Technology's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 4x growth to the end of 2022 on an annualised basis. That is well above its historical decline of 35% 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 13% annually. So it looks like Meyer Burger Technology is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The most important thing to note from this downgrade is that the consensus increased its forecast losses this year, suggesting all may not be well at Meyer Burger Technology. While analysts did downgrade their revenue estimates, these forecasts still imply revenues will perform better 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 Meyer Burger Technology, and their negativity could be grounds for caution.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Meyer Burger Technology analysts - going out to 2024, and you can see them 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 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.