Analysts Have Just Cut Their Etablissements Maurel & Prom S.A. (EPA:MAU) Revenue Estimates By 14%

Today is shaping up negative for Etablissements Maurel & Prom S.A. (EPA:MAU) shareholders, with the analysts 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. Shares are up 9.0% to €5.13 in the past week. We'd be curious to see if the downgrade is enough to reverse investor sentiment on the business.

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Following the latest downgrade, the current consensus, from the four analysts covering Etablissements Maurel & Prom, is for revenues of US$617m in 2025, which would reflect a concerning 24% reduction in Etablissements Maurel & Prom's sales over the past 12 months. Statutory earnings per share are supposed to crater 32% to US$0.80 in the same period. Prior to this update, the analysts had been forecasting revenues of US$721m and earnings per share (EPS) of US$0.86 in 2025. It looks like analyst sentiment has fallen somewhat in this update, with a measurable cut to revenue estimates and a small dip in earnings per share numbers as well.

Check out our latest analysis for Etablissements Maurel & Prom

What's most unexpected is that the consensus price target rose 6.9% to €5.67, strongly implying the downgrade to forecasts is not expected to be more than a temporary blip.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that sales are expected to reverse, with a forecast 24% annualised revenue decline to the end of 2025. That is a notable change from historical growth of 16% 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 1.4% per year. It's pretty clear that Etablissements Maurel & Prom's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The biggest issue in the new estimates is that analysts have reduced their earnings per share estimates, suggesting business headwinds lay ahead for Etablissements Maurel & Prom. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. There was also an increase in the price target, suggesting that there is more optimism baked into the forecasts than there was previously. Given the stark change in sentiment, we'd understand if investors became more cautious on Etablissements Maurel & Prom after today.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Etablissements Maurel & Prom going out to 2027, and you can see them free on our platform here.

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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.