Downgrade: The Latest Revenue And EPS Forecasts For METabolic EXplorer S.A. (EPA:METEX)

Market forces rained on the parade of METabolic EXplorer S.A. (EPA:METEX) shareholders today, when the covering analyst downgraded their forecasts for this year. 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.

After this downgrade, METabolic EXplorer's sole analyst is now forecasting revenues of €298m in 2022. This would be a substantial 74% improvement in sales compared to the last 12 months. After this downgrade, the company is anticipated to report a loss of €0.26 in 2022, a sharp decline from a profit over the last year. Prior to this update, the analyst had been forecasting revenues of €356m and earnings per share (EPS) of €0.30 in 2022. So we can see that the consensus has become notably more bearish on METabolic EXplorer's outlook with these numbers, making a measurable cut to this year's revenue estimates. Furthermore, they expect the business to be loss-making this year, compared to their previous forecasts of a profit.

See our latest analysis for METabolic EXplorer

The consensus price target fell 73% to €2.85, with the analyst clearly concerned about the company following the weaker revenue and earnings outlook.

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 can infer from the latest estimates that forecasts expect a continuation of METabolic EXplorer'shistorical trends, as the 74% annualised revenue growth to the end of 2022 is roughly in line with the 75% annual revenue growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 7.5% per year. So although METabolic EXplorer is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analyst is expecting METabolic EXplorer to become unprofitable this year. While the analyst did downgrade their revenue estimates, these forecasts still imply revenues will perform better than the wider market. With a serious cut to this year's expectations and a falling price target, we wouldn't be surprised if investors were becoming wary of METabolic EXplorer.

That said, this analyst might have good reason to be negative on METabolic EXplorer, given concerns around earnings quality. Learn more, and discover the 2 other flags we've identified, for 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.