The Consensus EPS Estimates For Groupe OKwind Société anonyme (EPA:ALOKW) Just Fell Dramatically

The latest analyst coverage could presage a bad day for Groupe OKwind Société anonyme (EPA:ALOKW), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting analysts have soured majorly on the business.

After the downgrade, the consensus from Groupe OKwind Société anonyme's dual analysts is for revenues of €63m in 2024, which would reflect a not inconsiderable 19% decline in sales compared to the last year of performance. Statutory earnings per share are supposed to crater 85% to €0.085 in the same period. Before this latest update, the analysts had been forecasting revenues of €78m and earnings per share (EPS) of €0.50 in 2024. Indeed, we can see that the analysts are a lot more bearish about Groupe OKwind Société anonyme's prospects, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.

Check out our latest analysis for Groupe OKwind Société anonyme

The consensus price target fell 59% to €8.50, with the weaker earnings outlook clearly leading analyst valuation estimates.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 35% by the end of 2024. This indicates a significant reduction from annual 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. It's pretty clear that Groupe OKwind Société anonyme'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 Groupe OKwind Société anonyme. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales 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 Groupe OKwind Société anonyme.

So things certainly aren't looking great, and you should also know that we've spotted some potential warning signs with Groupe OKwind Société anonyme, including its declining profit margins. For more information, you can click here to discover this and the 2 other flags 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.