Revenue Miss: Groupe OKwind Société anonyme Fell 30% Short Of Analyst Revenue Estimates And Analysts Have Been Revising Their Models

One of the biggest stories of last week was how Groupe OKwind Société anonyme (EPA:ALOKW) shares plunged 21% in the week since its latest quarterly results, closing yesterday at €6.49. Revenues were €16m, 30% shy of what the analysts were expecting, although statutory earnings of €0.91 per share were roughly in line with what was forecast. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for Groupe OKwind Société anonyme

Following the recent earnings report, the consensus from dual analysts covering Groupe OKwind Société anonyme is for revenues of €63.3m in 2024. This implies a not inconsiderable 19% decline in revenue compared to the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of €78.0m and earnings per share (EPS) of €0.50 in 2024. So we can see that while the consensus made a substantial drop in revenue estimates, it no longer provides an earnings per share estimate. This suggests that the market is now more focused on revenues after the latest results.

Intriguingly,the analysts have cut their price target 59% to €8.50 showing a clear decline in sentiment around Groupe OKwind Société anonyme's valuation.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that revenue is expected to reverse, with a forecast 35% annualised decline to the end of 2024. That is a notable change from historical growth of 16% over the last year. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 6.4% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Groupe OKwind Société anonyme is expected to lag the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their revenue estimates for next year. On the negative side, they also downgraded their revenue estimates, and forecasts imply revenues will perform worse than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

At least one of Groupe OKwind Société anonyme's dual analysts has provided estimates out to 2026, which can be seen for free on our platform here.

However, before you get too enthused, we've discovered 3 warning signs for Groupe OKwind Société anonyme (1 is concerning!) that you should be aware of.

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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.