Newsflash: MGI - Media and Games Invest SE (ETR:M8G) Analysts Have Been Trimming Their Revenue Forecasts

One thing we could say about the analysts on MGI - Media and Games Invest SE (ETR:M8G) - 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 latest downgrade, the current consensus, from the eight analysts covering MGI - Media and Games Invest, is for revenues of €304m in 2023, which would reflect a definite 14% reduction in MGI - Media and Games Invest's sales over the past 12 months. Before the latest update, the analysts were foreseeing €340m of revenue in 2023. It looks like forecasts have become a fair bit less optimistic on MGI - Media and Games Invest, given the substantial drop in revenue estimates.

View our latest analysis for MGI - Media and Games Invest

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 27% by the end of 2023. This indicates a significant reduction from annual growth of 43% 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 5.6% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - MGI - Media and Games Invest is expected to lag the wider industry.

The Bottom Line

The clear low-light was that analysts slashing their revenue forecasts for MGI - Media and Games Invest this year. They also expect company revenue to perform worse than the wider market. Given the stark change in sentiment, we'd understand if investors became more cautious on MGI - Media and Games Invest after today.

Want to learn more? We have estimates for MGI - Media and Games Invest from its eight analysts out until 2025, and you can see them 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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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.