Revenue Downgrade: Here's What Analysts Forecast For Aroundtown SA (ETR:AT1)

The latest analyst coverage could presage a bad day for Aroundtown SA (ETR:AT1), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative. The stock price has risen 7.3% to €2.53 over the past week. We'd be curious to see if the downgrade is enough to reverse investor sentiment on the business.

Following the latest downgrade, the current consensus, from the nine analysts covering Aroundtown, is for revenues of €1.4b in 2025, which would reflect a perceptible 5.6% reduction in Aroundtown's sales over the past 12 months. Per-share earnings are expected to soar 514% to €0.30. Prior to this update, the analysts had been forecasting revenues of €1.6b and earnings per share (EPS) of €0.32 in 2025. It looks like analyst sentiment has fallen somewhat in this update, with a measurable cut to revenue estimates and a small dip in earnings per share numbers as well.

See our latest analysis for Aroundtown

Despite the cuts to forecast earnings, there was no real change to the €2.91 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value.

Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 5.6% by the end of 2025. This indicates a significant reduction from annual growth of 3.7% over the last five years. Yet aggregate analyst estimates for other companies in the industry suggest that industry revenues are forecast to decline 17% per year. So it's pretty clear that Aroundtown's revenues are expected to shrink slower than the wider industry.

The Bottom Line

The most important thing to take away is that analysts cut their earnings per share estimates, expecting a clear decline in business conditions. Sadly they also cut their revenue estimates, although at least the company is expected to perform a bit better than the wider market. Given the stark change in sentiment, we'd understand if investors became more cautious on Aroundtown after today.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have estimates - from multiple Aroundtown analysts - going out to 2027, and you can see them free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership.

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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.