The Consensus EPS Estimates For Miliboo Société anonyme (EPA:ALMLB) Just Fell A Lot

The latest analyst coverage could presage a bad day for Miliboo Société anonyme (EPA:ALMLB), with the covering analyst making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. 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. What's more, Miliboo Société anonyme has been out of favour with the market in recent times, so it will be interesting to see if this downgrade is enough to sink the stock even further. The stock price has dropped 4.2% to €5.46 in the past week.

Following the latest downgrade, Miliboo Société anonyme's single analyst currently expects revenues in 2022 to be €41m, approximately in line with the last 12 months. Statutory earnings per share are supposed to nosedive 74% to €0.09 in the same period. Prior to this update, the analyst had been forecasting revenues of €51m and earnings per share (EPS) of €0.29 in 2022. It looks like analyst sentiment has declined substantially, with a measurable cut to revenue estimates and a pretty serious decline to earnings per share numbers as well.

See our latest analysis for Miliboo Société anonyme

The consensus price target fell 7.6% to €8.11, with the weaker earnings outlook clearly leading analyst valuation estimates.

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 Miliboo Société anonyme's revenue growth is expected to slow, with the forecast 0.8% annualised growth rate until the end of 2022 being well below the historical 20% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 5.1% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Miliboo Société anonyme.

The Bottom Line

The biggest issue in the new estimates is that the analyst has reduced their earnings per share estimates, suggesting business headwinds lay ahead for Miliboo Société anonyme. Unfortunately the analyst also downgraded their revenue estimates, and industry data suggests that Miliboo 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.

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 Miliboo Société anonyme going out as far as 2024, and you can see them 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 that insiders are buying.

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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