The La Française de l'Energie S.A. (EPA:FDE) Analysts Have Been Trimming Their Sales Forecasts

Today is shaping up negative for La Française de l'Energie S.A. (EPA:FDE) shareholders, with the analysts delivering a substantial negative revision to next 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.

Following the downgrade, the most recent consensus for La Française de l'Energie from its four analysts is for revenues of €57m in 2023 which, if met, would be a sizeable 269% increase on its sales over the past 12 months. Before the latest update, the analysts were foreseeing €64m of revenue in 2023. It looks like forecasts have become a fair bit less optimistic on La Française de l'Energie, given the measurable cut to revenue estimates.

View our latest analysis for La Française de l'Energie

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. The analysts are definitely expecting La Française de l'Energie's growth to accelerate, with the forecast 184% annualised growth to the end of 2023 ranking favourably alongside historical growth of 25% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue shrink 1.8% per year. It seems obvious that as part of the brighter growth outlook, La Française de l'Energie is expected to grow faster than the wider industry.

The Bottom Line

The clear low-light was that analysts slashing their revenue forecasts for La Française de l'Energie next year. Analysts also expect revenues to perform better than the wider market. Given the stark change in sentiment, we'd understand if investors became more cautious on La Française de l'Energie after today.

Still got questions? At least one of La Française de l'Energie's four analysts has provided estimates 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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