Forecast: Analysts Think Compañía de Distribución Integral Logista Holdings, S.A.'s (BME:LOG) Business Prospects Have Improved Drastically

Celebrations may be in order for Compañía de Distribución Integral Logista Holdings, S.A. (BME:LOG) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The analysts greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals.

After the upgrade, the consensus from Compañía de Distribución Integral Logista Holdings' four analysts is for revenues of €1.6b in 2023, which would reflect a concerning 86% decline in sales compared to the last year of performance. Per-share earnings are expected to climb 17% to €1.87. Before this latest update, the analysts had been forecasting revenues of €1.3b and earnings per share (EPS) of €1.60 in 2023. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.

Check out our latest analysis for Compañía de Distribución Integral Logista Holdings

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that sales are expected to reverse, with a forecast 86% annualised revenue decline to the end of 2023. That is a notable change from historical growth of 4.1% 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 6.6% annually for the foreseeable future. The forecasts do look bearish for Compañía de Distribución Integral Logista Holdings, since they're expecting it to shrink faster than the 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. Notably, analysts also upgraded their revenue estimates, with sales performing well although Compañía de Distribución Integral Logista Holdings' revenue growth is expected to trail that of the wider market. More bullish expectations could be a signal for investors to take a closer look at Compañía de Distribución Integral Logista Holdings.

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 Compañía de Distribución Integral Logista Holdings going out to 2025, 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 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.