Party Time: One Broker Just Made Major Increases To Their Energiedienst Holding AG (VTX:EDHN) Earnings Forecast

Celebrations may be in order for Energiedienst Holding AG (VTX:EDHN) shareholders, with the covering analyst delivering a significant upgrade to their statutory estimates for the company. The analyst greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals.

Following the latest upgrade, the current consensus, from the single analyst covering Energiedienst Holding, is for revenues of €1.7b in 2023, which would reflect a perceptible 4.6% reduction in Energiedienst Holding's sales over the past 12 months. Statutory earnings per share are anticipated to fall 18% to €2.05 in the same period. Prior to this update, the analyst had been forecasting revenues of €1.4b and earnings per share (EPS) of €1.80 in 2023. So we can see there's been a pretty clear increase in analyst sentiment in recent times, with both revenues and earnings per share receiving a decent lift in the latest estimates.

View our latest analysis for Energiedienst Holding

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. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 4.6% by the end of 2023. This indicates a significant reduction from annual growth of 13% 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 4.0% annually for the foreseeable future.

The Bottom Line

The biggest takeaway for us from these new estimates is that the analyst upgraded their earnings per share estimates, with improved earnings power expected for this year. Fortunately the analyst also upgraded their revenue estimates, with sales performing well and Energiedienst Holding's revenues performing in line with the wider market. With a serious upgrade to expectations, it might be time to take another look at Energiedienst Holding.

The covering analyst is definitely bullish on Energiedienst Holding, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including concerns around earnings quality. For more information, you can click through to our platform to learn more about this and the 1 other concern we've identified .

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.