Solteq Oyj (HEL:SOLTEQ) Analysts Just Slashed This Year's Revenue Estimates By 11%

The analysts covering Solteq Oyj (HEL:SOLTEQ) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. Revenue estimates were cut sharply as analysts signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well.

After the downgrade, the consensus from Solteq Oyj's twin analysts is for revenues of €61m in 2023, which would reflect a discernible 7.4% decline in sales compared to the last year of performance. The loss per share is anticipated to greatly reduce in the near future, narrowing 84% to €0.05. Yet before this consensus update, the analysts had been forecasting revenues of €69m and losses of €0.05 per share in 2023. 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 making no real change to the loss per share numbers.

View our latest analysis for Solteq Oyj

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Solteq Oyj's past performance and to peers in the same industry. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 9.7% by the end of 2023. This indicates a significant reduction from annual growth of 5.9% 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 14% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Solteq Oyj is expected to lag the wider industry.

The Bottom Line

Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. Overall, given the drastic downgrade to this year's forecasts, we'd be feeling a little more wary of Solteq Oyj going forwards.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2025, which can be seen for 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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