CapMan Oyj (HEL:CAPMAN) Analysts Just Slashed Next Year's Estimates

Market forces rained on the parade of CapMan Oyj (HEL:CAPMAN) shareholders today, when the analysts downgraded their forecasts for next year. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting analysts have soured majorly on the business.

After the downgrade, the three analysts covering CapMan Oyj are now predicting revenues of €67m in 2024. If met, this would reflect a meaningful 13% improvement in sales compared to the last 12 months. Per-share earnings are expected to shoot up 1,484% to €0.13. Previously, the analysts had been modelling revenues of €75m and earnings per share (EPS) of €0.19 in 2024. Indeed, we can see that the analysts are a lot more bearish about CapMan Oyj's prospects, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.

Check out our latest analysis for CapMan Oyj

It'll come as no surprise then, to learn that the analysts have cut their price target 15% to €2.20.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the CapMan Oyj's past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of CapMan Oyj'shistorical trends, as the 11% annualised revenue growth to the end of 2024 is roughly in line with the 12% annual revenue growth 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 revenues grow 6.4% per year. So it's pretty clear that CapMan Oyj is forecast to grow substantially faster than its 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 CapMan Oyj. Unfortunately, analysts also downgraded their revenue estimates, although our data indicates revenues are expected to perform better than the wider market. Given the scope of the downgrades, it would not be a surprise to see the market become more wary of the business.

So things certainly aren't looking great, and you should also know that we've spotted some potential warning signs with CapMan Oyj, including the risk of cutting its dividend. Learn more, and discover the 2 other risks we've identified, for 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.