Adler Group S.A. (ETR:ADJ) Analysts Just Slashed This Year's Estimates

One thing we could say about the analysts on Adler Group S.A. (ETR:ADJ) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting the analysts have soured majorly on the business.

Following the latest downgrade, the current consensus, from the four analysts covering Adler Group, is for revenues of €394m in 2021, which would reflect a sizeable 56% reduction in Adler Group's sales over the past 12 months. Statutory earnings per share are presumed to ascend 12% to €3.12. Previously, the analysts had been modelling revenues of €462m and earnings per share (EPS) of €3.76 in 2021. Indeed, we can see that the analysts are a lot more bearish about Adler Group's prospects, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.

See our latest analysis for Adler Group

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 66% by the end of 2021. This indicates a significant reduction from annual growth of 44% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue decline 2.5% annually for the foreseeable future. The forecasts do look bearish for Adler Group, since they're expecting it to shrink faster than the 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 Adler Group. Unfortunately they also downgraded their revenue estimates, and our aggregation of analyst estimates suggests that Adler Group revenue is expected to perform worse than the wider market. Given the serious cut to this year's outlook, it's clear that analysts have turned more bearish on Adler Group, and we wouldn't blame shareholders for feeling a little more cautious themselves.

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 Adler Group's financials, such as dilutive stock issuance over the past year. Learn more, and discover the 4 other flags we've identified, for free on our platform here.

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