These Analysts Think Groupe OKwind Société anonyme's (EPA:ALOKW) Sales Are Under Threat

Today is shaping up negative for Groupe OKwind Société anonyme (EPA:ALOKW) shareholders, with the analysts delivering a substantial negative revision to this year's forecasts. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.

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Following the latest downgrade, the dual analysts covering Groupe OKwind Société anonyme provided consensus estimates of €50m revenue in 2025, which would reflect an uncomfortable 18% decline on its sales over the past 12 months. Losses are predicted to fall substantially, shrinking 33% to €0.29 per share. Before this latest update, the analysts had been forecasting revenues of €63m and earnings per share (EPS) of €0.017 in 2025. There looks to have been a major change in sentiment regarding Groupe OKwind Société anonyme's prospects, with a pretty serious reduction to revenues and the analysts now forecasting a loss instead of a profit.

See our latest analysis for Groupe OKwind Société anonyme

The consensus price target fell 44% to €2.95, implicitly signalling that lower earnings per share are a leading indicator for Groupe OKwind Société anonyme's valuation.

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. We would highlight that sales are expected to reverse, with a forecast 18% annualised revenue decline to the end of 2025. That is a notable change from historical growth of 32% over the last three years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 6.6% 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 most important thing to take away is that analysts are expecting Groupe OKwind Société anonyme to become unprofitable this year. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that Groupe OKwind Société anonyme's revenues are expected to grow slower than the wider market. Furthermore, there was a cut to the price target, suggesting that the latest news has led to more pessimism about the intrinsic value of the business. Overall, given the drastic downgrade to this year's forecasts, we'd be feeling a little more wary of Groupe OKwind Société anonyme 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 2027, which can be seen for free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies backed by insiders.

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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.