Energiekontor AG (ETR:EKT) Analysts Just Cut Their EPS Forecasts Substantially

Market forces rained on the parade of Energiekontor AG (ETR:EKT) shareholders today, when the analysts downgraded their forecasts for this year. Both revenue and earnings per share (EPS) estimates were cut sharply as analysts factored in the latest outlook for the business, concluding that they were too optimistic previously.

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After the downgrade, the twin analysts covering Energiekontor are now predicting revenues of €173m in 2025. If met, this would reflect a major 39% improvement in sales compared to the last 12 months. Per-share earnings are expected to swell 14% to €2.85. Before this latest update, the analysts had been forecasting revenues of €207m and earnings per share (EPS) of €4.02 in 2025. Indeed, we can see that the analysts are a lot more bearish about Energiekontor's prospects, administering a measurable cut to revenue estimates and slashing their EPS estimates to boot.

View our latest analysis for Energiekontor

The consensus price target fell 5.4% to €105, with the weaker earnings outlook clearly leading analyst valuation estimates.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Energiekontor's past performance and to peers in the same industry. It's clear from the latest estimates that Energiekontor's rate of growth is expected to accelerate meaningfully, with the forecast 39% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 7.9% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 9.8% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Energiekontor is expected to grow much faster than its industry.

The Bottom Line

The biggest issue in the new estimates is that analysts have reduced their earnings per share estimates, suggesting business headwinds lay ahead for Energiekontor. Unfortunately, analysts also downgraded their revenue estimates, although our data indicates revenues are expected to perform better than the wider market. With a serious cut to this year's expectations and a falling price target, we wouldn't be surprised if investors were becoming wary of Energiekontor.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for Energiekontor going out as far as 2027, and you can see them 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.