Analysts Have Just Cut Their Brockhaus Technologies AG (FRA:BKHT) Revenue Estimates By 23%

Market forces rained on the parade of Brockhaus Technologies AG (FRA:BKHT) shareholders today, when the analysts downgraded their forecasts for this year. There was a fairly draconian cut to their revenue estimates, perhaps an implicit admission that previous forecasts were much too optimistic.

Following the downgrade, the current consensus from Brockhaus Technologies' four analysts is for revenues of €144m in 2022 which - if met - would reflect a major 134% increase on its sales over the past 12 months. The losses are expected to disappear over the next year or so, with forecasts for a profit of €2.22 per share this year. Previously, the analysts had been modelling revenues of €187m and earnings per share (EPS) of €1.66 in 2022. So there's been quite a change-up of views after the recent consensus updates, with the analysts making a serious cut to their revenue forecasts while also granting a sizeable expansion in to the earnings per share numbers.

See our latest analysis for Brockhaus Technologies

The consensus has made no major changes to the price target of €43.00, suggesting the forecast improvement in earnings is expected to offset the decline in revenues this year. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Brockhaus Technologies analyst has a price target of €70.00 per share, while the most pessimistic values it at €28.00. This is a fairly broad spread of estimates, suggesting that the analysts are forecasting a wide range of possible outcomes for the business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Brockhaus Technologies' growth to accelerate, with the forecast 134% annualised growth to the end of 2022 ranking favourably alongside historical growth of 46% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 11% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Brockhaus Technologies to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for this year. While analysts did downgrade their revenue estimates, these forecasts still imply revenues will perform better than the wider market. Given the stark change in sentiment, we'd understand if investors became more cautious on Brockhaus Technologies after today.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Brockhaus Technologies analysts - going out to 2024, 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 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.