Analyst Forecasts Just Got A Lot More Bearish On Ecoslops S.A. (EPA:ALESA)

The analysts covering Ecoslops S.A. (EPA:ALESA) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. Revenue and earnings per share (EPS) forecasts were both revised downwards, with analysts seeing grey clouds on the horizon.

Following the latest downgrade, the two analysts covering Ecoslops provided consensus estimates of €14m revenue in 2023, which would reflect a substantial 24% decline on its sales over the past 12 months. Per-share losses are expected to explode, reaching €0.44 per share. Prior to this update, the analysts had been forecasting revenues of €19m and earnings per share (EPS) of €0.24 in 2023. So we can see that the consensus has become notably more bearish on Ecoslops' outlook with these numbers, making a pretty serious reduction to this year's revenue estimates. Furthermore, they expect the business to be loss-making this year, compared to their previous forecasts of a profit.

Check out our latest analysis for Ecoslops

The consensus price target fell 64% to €5.05, with the analysts clearly concerned about the company following the weaker revenue and earnings outlook. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Ecoslops, with the most bullish analyst valuing it at €5.10 and the most bearish at €5.00 per share. Still, with such a tight range of estimates, it suggests the analysts have a pretty good idea of what they think the company is worth.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that sales are expected to reverse, with a forecast 43% annualised revenue decline to the end of 2023. That is a notable change from historical growth of 21% 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 4.4% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Ecoslops is expected to lag the wider industry.

The Bottom Line

The most important thing to take away is that analysts are expecting Ecoslops to become unprofitable this year. 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 Ecoslops.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Ecoslops going out as far as 2025, and you can see them 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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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.