These Analysts Just Made An Incredible Downgrade To Their Kamux Oyj (HEL:KAMUX) EPS Forecasts

The analysts covering Kamux Oyj (HEL:KAMUX) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for next year. Revenue and earnings per share (EPS) forecasts were both revised downwards, with analysts seeing grey clouds on the horizon.

After the downgrade, the consensus from Kamux Oyj's dual analysts is for revenues of €943m in 2023, which would reflect a noticeable 4.7% decline in sales compared to the last year of performance. Statutory earnings per share are anticipated to plummet 27% to €0.33 in the same period. Before this latest update, the analysts had been forecasting revenues of €1.1b and earnings per share (EPS) of €0.55 in 2023. Indeed, we can see that the analysts are a lot more bearish about Kamux Oyj's prospects, administering a measurable cut to revenue estimates and slashing their EPS estimates to boot.

Check out our latest analysis for Kamux Oyj

It'll come as no surprise then, to learn that the analysts have cut their price target 15% to €6.00. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Kamux Oyj at €7.50 per share, while the most bearish prices it at €5.00. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Kamux Oyj shareholders.

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 3.8% annualised revenue decline to the end of 2023. That is a notable change from historical growth of 17% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 4.5% per year. It's pretty clear that Kamux Oyj's revenues are expected to perform substantially worse than 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 Kamux Oyj. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that Kamux Oyj's revenues are expected to grow slower than the wider market. After such a stark change in sentiment from analysts, we'd understand if readers now felt a bit wary of Kamux Oyj.

After a downgrade like this, it's pretty clear that previous forecasts were too optimistic. What's more, we've spotted several possible issues with Kamux Oyj's business, like concerns around earnings quality. For more information, you can click here to discover this and the 2 other warning signs we've identified.

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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.