The Energiedienst Holding AG (VTX:EDHN) Analyst Just Cut Their Revenue Forecast By 12%

The latest analyst coverage could presage a bad day for Energiedienst Holding AG (VTX:EDHN), with the covering analyst making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Revenue estimates were cut sharply as the analyst signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well. The stock price has risen 5.8% to CHF38.30 over the past week. We'd be curious to see if the downgrade is enough to reverse investor sentiment on the business.

Following the downgrade, the consensus from lone analyst covering Energiedienst Holding is for revenues of €998m in 2021, implying a measurable 5.0% decline in sales compared to the last 12 months. Before the latest update, the analyst was foreseeing €1.1b of revenue in 2021. The consensus view seems to have become more pessimistic on Energiedienst Holding, noting the measurable cut to revenue estimates in this update.

View our latest analysis for Energiedienst Holding

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Energiedienst Holding's past performance and to peers in the same industry. We would highlight that sales are expected to reverse, with a forecast 5.0% annualised revenue decline to the end of 2021. That is a notable change from historical growth of 1.2% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 3.7% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Energiedienst Holding is expected to lag the wider industry.

The Bottom Line

The clear low-light was that the analyst slashing their revenue forecasts for Energiedienst Holding this year. They also expect company revenue 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 Energiedienst Holding going forwards.

Of course, this isn't the full story. One Energiedienst Holding broker/analyst has provided estimates out to 2023, which can be seen for 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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