The Consensus EPS Estimates For Hydrogen-Refueling-Solutions SA (EPA:ALHRS) Just Fell Dramatically

Market forces rained on the parade of Hydrogen-Refueling-Solutions SA (EPA:ALHRS) shareholders today, when the analysts downgraded their forecasts for this year. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting analysts have soured majorly on the business. Investors however, have been notably more optimistic about Hydrogen-Refueling-Solutions recently, with the stock price up a worthy 25% to €4.23 in the past week. It will be interesting to see if the downgrade has an impact on buying demand for the company's shares.

After this downgrade, Hydrogen-Refueling-Solutions' four analysts are now forecasting revenues of €26m in 2025. This would be an okay 5.3% improvement in sales compared to the last 12 months. Losses are expected to be contained, narrowing 17% per share from last year to €0.56 per share. However, before this estimates update, the consensus had been expecting revenues of €31m and €0.50 per share in losses. 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 expecting losses per share to increase.

View our latest analysis for Hydrogen-Refueling-Solutions

The consensus price target fell 14% to €5.83, implicitly signalling that lower earnings per share are a leading indicator for Hydrogen-Refueling-Solutions' valuation.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that Hydrogen-Refueling-Solutions' revenue growth is expected to slow, with the forecast 5.3% annualised growth rate until the end of 2025 being well below the historical 40% p.a. growth over the last five years. Compare this to the 26 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 5.2% per year. So it's pretty clear that, while Hydrogen-Refueling-Solutions' revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The most important thing to note from this downgrade is that the consensus increased its forecast losses this year, suggesting all may not be well at Hydrogen-Refueling-Solutions. Lamentably, they also downgraded their sales forecasts, but the business is still expected to grow at roughly the same rate as the market itself. After such a stark change in sentiment from analysts, we'd understand if readers now felt a bit wary of Hydrogen-Refueling-Solutions.

As you can see, the analysts clearly aren't bullish, and there might be good reason for that. We've identified some potential issues with Hydrogen-Refueling-Solutions' financials, such as a short cash runway. For more information, you can click here to discover this and the 3 other flags we've identified.

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 with high insider ownership.

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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.