Analysts Just Made A Major Revision To Their DBV Technologies S.A. (EPA:DBV) Revenue Forecasts

One thing we could say about the analysts on DBV Technologies S.A. (EPA:DBV) - 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.

After the downgrade, the consensus from DBV Technologies' three analysts is for revenues of US$5.3m in 2024, which would reflect a stressful 61% decline in sales compared to the last year of performance. Prior to the latest estimates, the analysts were forecasting revenues of US$6.5m in 2024. It looks like forecasts have become a fair bit less optimistic on DBV Technologies, given the measurable cut to revenue estimates.

See our latest analysis for DBV Technologies

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. Over the past five years, revenues have declined around 9.4% annually. Worse, forecasts are essentially predicting the decline to accelerate, with the estimate for an annualised 85% decline in revenue until the end of 2024. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 33% per year. So it's pretty clear that, while it does have declining revenues, the analysts also expect DBV Technologies to suffer worse than the wider industry.

The Bottom Line

The most important thing to take away is that analysts cut their revenue estimates for this year. They're also anticipating slower revenue growth than the wider market. Given the stark change in sentiment, we'd understand if investors became more cautious on DBV Technologies after today.

So things certainly aren't looking great, and you should also know that we've spotted some potential warning signs with DBV Technologies, including a short cash runway. For more information, you can click here to discover this and the 3 other concerns we've identified.

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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.

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