Bearish: This Analyst Is Revising Their Cabasse Société anonyme (EPA:ALCAB) Revenue and EPS Prognostications

Market forces rained on the parade of Cabasse Société anonyme (EPA:ALCAB) shareholders today, when the covering analyst downgraded their forecasts for this year. Both revenue and earnings per share (EPS) estimates were cut sharply as the analyst factored in the latest outlook for the business, concluding that they were too optimistic previously.

Following this downgrade, Cabasse Société anonyme's lone analyst are forecasting 2024 revenues to be €9.2m, approximately in line with the last 12 months. Losses are expected to be contained, narrowing 15% per share from last year to €0.52 per share. Yet before this consensus update, the analyst had been forecasting revenues of €11m and losses of €0.41 per share in 2024. Ergo, there's been a clear change in sentiment, with the analyst administering a notable cut to this year's revenue estimates, while at the same time increasing their loss per share forecasts.

See our latest analysis for Cabasse Société anonyme

The consensus price target fell 22% to €1.80, implicitly signalling that lower earnings per share are a leading indicator for Cabasse 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 sales are expected to reverse, with a forecast 1.0% annualised revenue decline to the end of 2024. That is a notable change from historical growth of 1.4% 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 5.0% annually for the foreseeable future. It's pretty clear that Cabasse 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 the analyst increased their loss per share estimates for this year. Unfortunately the analyst also downgraded their revenue estimates, and industry data suggests that Cabasse Société anonyme's revenues are expected to grow slower than the wider market. Given the scope of the downgrades, it would not be a surprise to see the market become more wary of the business.

So things certainly aren't looking great, and you should also know that we've spotted some potential warning signs with Cabasse Société anonyme, including major dilution from new stock issuance in the past year. For more information, you can click here to discover this and the 1 other risk 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.

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