Cliq Digital AG (ETR:CLIQ) Analysts Just Cut Their EPS Forecasts Substantially

One thing we could say about the analysts on Cliq Digital AG (ETR:CLIQ) - 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) estimates were cut sharply as the analysts factored in the latest outlook for the business, concluding that they were too optimistic previously.

Following the latest downgrade, the four analysts covering Cliq Digital provided consensus estimates of €307m revenue in 2024, which would reflect a measurable 3.1% decline on its sales over the past 12 months. Statutory earnings per share are supposed to nosedive 34% to €2.43 in the same period. Previously, the analysts had been modelling revenues of €358m and earnings per share (EPS) of €4.87 in 2024. Indeed, we can see that the analysts are a lot more bearish about Cliq Digital's prospects, administering a measurable cut to revenue estimates and slashing their EPS estimates to boot.

Check out our latest analysis for Cliq Digital

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 4.1% by the end of 2024. This indicates a significant reduction from annual growth of 37% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 9.8% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Cliq Digital is expected to lag the wider 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 Cliq Digital. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. We wouldn't be surprised to find shareholders feeling a bit shell-shocked, after these downgrades. It looks like analysts have become a lot more bearish on Cliq Digital, and their negativity could be grounds for caution.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have estimates - from multiple Cliq Digital analysts - going out to 2026, 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 backed by insiders.

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