Revenue Downgrade: Here's What Analysts Forecast For LPKF Laser & Electronics SE (ETR:LPK)

The analysts covering LPKF Laser & Electronics SE (ETR:LPK) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.

Following this downgrade, LPKF Laser & Electronics' four analysts are forecasting 2024 revenues to be €135m, approximately in line with the last 12 months. Statutory earnings per share are presumed to jump 452% to €0.40. Prior to this update, the analysts had been forecasting revenues of €155m and earnings per share (EPS) of €0.40 in 2024. So there's been a clear change in analyst sentiment in the recent update, with the analysts making a measurable cut to revenues and reconfirming their earnings per share estimates.

View our latest analysis for LPKF Laser & Electronics

The consensus price target was reduced 8.8% to €13.00, with the lower revenue forecasts indicating negative sentiment towards LPKF Laser & Electronics, even though earnings forecasts were unchanged.

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. It's also worth noting that the years of declining sales look to have come to an end, with the forecast for flat revenues to the end of 2024. Historically, LPKF Laser & Electronics' sales have shrunk approximately 1.9% annually over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 10% per year. So it's pretty clear that, although revenues are improving, LPKF Laser & Electronics is still expected to grow slower than the industry.

The Bottom Line

The most obvious conclusion from this consensus update is that there's been no major change in the business' prospects in recent times, with analysts holding earnings per share steady, in line with previous estimates. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that LPKF Laser & Electronics' revenues are expected to grow slower than the wider market. The consensus price target fell measurably, with analysts seemingly not reassured by recent business developments, leading to a lower estimate of LPKF Laser & Electronics' future valuation. Given the stark change in sentiment, we'd understand if investors became more cautious on LPKF Laser & Electronics after today.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At Simply Wall St, we have a full range of analyst estimates for LPKF Laser & Electronics going out to 2026, and you can see them free on our platform here.

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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.