The ProCredit Holding AG & Co. KGaA (ETR:PCZ) Analysts Have Been Trimming Their Sales Forecasts

One thing we could say about the analysts on ProCredit Holding AG & Co. KGaA (ETR:PCZ) - 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 current consensus from ProCredit Holding KGaA's two analysts is for revenues of €285m in 2022 which - if met - would reflect a decent 11% increase on its sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of €318m in 2022. It looks like forecasts have become a fair bit less optimistic on ProCredit Holding KGaA, given the substantial drop in revenue estimates.

View our latest analysis for ProCredit Holding KGaA

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. It's clear from the latest estimates that ProCredit Holding KGaA's rate of growth is expected to accelerate meaningfully, with the forecast 22% annualised revenue growth to the end of 2022 noticeably faster than its historical growth of 0.7% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 5.1% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that ProCredit Holding KGaA is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that analysts cut their revenue estimates for this year. They're also forecasting more rapid revenue growth than the wider market. Overall, given the drastic downgrade to this year's forecasts, we'd be feeling a little more wary of ProCredit Holding KGaA going forwards.

As you can see, the analysts clearly aren't bullish, and there might be good reason for that. We've identified some potential issues with ProCredit Holding KGaA's financials, such as concerns around earnings quality. For more information, you can click here to discover this and the 1 other warning sign 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.