ERAMET S.A. (EPA:ERA) Analysts Just Slashed This Year's Revenue Estimates By 11%

One thing we could say about the analysts on ERAMET S.A. (EPA:ERA) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. There was a fairly draconian cut to their revenue estimates, perhaps an implicit admission that previous forecasts were much too optimistic.

Following the latest downgrade, the five analysts covering ERAMET provided consensus estimates of €3.6b revenue in 2023, which would reflect a chunky 11% decline on its sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of €4.1b in 2023. It looks like forecasts have become a fair bit less optimistic on ERAMET, given the measurable cut to revenue estimates.

Check out our latest analysis for ERAMET

Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 21% by the end of 2023. This indicates a significant reduction from annual growth of 5.5% over the last five years. Yet aggregate analyst estimates for other companies in the industry suggest that industry revenues are forecast to decline 0.7% per year. The forecasts do look bearish for ERAMET, since they're expecting it to shrink faster than the industry.

The Bottom Line

The most important thing to take away is that analysts cut their revenue estimates for this year. They're also forecasting for revenues to shrink at a quicker rate than companies in the wider market. Overall, given the drastic downgrade to this year's forecasts, we'd be feeling a little more wary of ERAMET going forwards.

Want to learn more? We have estimates for ERAMET from its five analysts out until 2025, and you can see them free on our platform here.

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