This Erlebnis Akademie AG (FRA:EAD) Analyst Just Made A Noteworthy 11% Cut To Their Forecasts

The latest analyst coverage could presage a bad day for Erlebnis Akademie AG (FRA:EAD), with the covering analyst making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Revenue and earnings per share (EPS) forecasts were both revised downwards, with the analyst seeing grey clouds on the horizon.

Following this downgrade, Erlebnis Akademie's one analyst are forecasting 2023 revenues to be €24m, approximately in line with the last 12 months. Losses are predicted to fall substantially, shrinking 61% to €0.13 per share. Previously, the analyst had been modelling revenues of €27m and earnings per share (EPS) of €0.27 in 2023. There looks to have been a major change in sentiment regarding Erlebnis Akademie's prospects, with a measurable cut to revenues and the analyst now forecasting a loss instead of a profit.

Check out our latest analysis for Erlebnis Akademie

The consensus price target fell 13% to €18.70, with the analyst clearly concerned about the company following the weaker revenue and earnings outlook.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that sales are expected to reverse, with a forecast 2.0% annualised revenue decline to the end of 2023. That is a notable change from historical growth of 12% 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 9.9% per year. It's pretty clear that Erlebnis Akademie's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to take away is that the analyst is expecting Erlebnis Akademie to become unprofitable this year. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. Given the scope of the downgrades, it would not be a surprise to see the market become more wary of the business.

That said, this analyst might have good reason to be negative on Erlebnis Akademie, given dilutive stock issuance over the past year. Learn more, and discover the 2 other concerns we've identified, 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.