News Flash: One Compagnie Lebon (EPA:LBON) Analyst Has Been Trimming Their Revenue Forecasts

Today is shaping up negative for Compagnie Lebon (EPA:LBON) shareholders, with the covering analyst 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.

After the downgrade, the solo analyst covering Compagnie Lebon is now predicting revenues of €90m in 2022. If met, this would reflect a solid 16% improvement in sales compared to the last 12 months. Statutory earnings per share are anticipated to crater 57% to €2.56 in the same period. Before this latest update, the analyst had been forecasting revenues of €102m and earnings per share (EPS) of €2.56 in 2022. So there's been a clear change in analyst sentiment in the recent update, with the analyst making a measurable cut to revenues and reconfirming their earnings per share estimates.

Check out our latest analysis for Compagnie Lebon

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. The analyst is definitely expecting Compagnie Lebon's growth to accelerate, with the forecast 16% annualised growth to the end of 2022 ranking favourably alongside historical growth of 0.2% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to see a revenue decline of 0.3% annually. So it's clear with the acceleration in growth, Compagnie Lebon is expected to grow meaningfully faster than the wider industry.

The Bottom Line

The most obvious conclusion from this consensus update is that there's been no major change in the business' prospects in recent times, with the analyst holding earnings per share steady, in line with previous estimates. Sadly they also cut their revenue estimates, although at least the company is expected to perform a bit better than the wider market. Often, one downgrade can set off a daisy-chain of cuts, especially if an industry is in decline. So we wouldn't be surprised if the market became a lot more cautious on Compagnie Lebon after today.

Still, the long-term prospects of the business are much more relevant than next year's earnings. At least one analyst has provided forecasts out to 2024, which can be seen for 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.