These Analysts Just Made An Downgrade To Their Genfit S.A. (EPA:GNFT) EPS Forecasts

The analysts covering Genfit S.A. (EPA:GNFT) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. Revenue and earnings per share (EPS) forecasts were both revised downwards, with the analysts seeing grey clouds on the horizon.

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Following the downgrade, the consensus from four analysts covering Genfit is for revenues of €57m in 2025, implying an uneasy 19% decline in sales compared to the last 12 months. After this downgrade, the company is anticipated to report a loss of €0.44 in 2025, a sharp decline from a profit over the last year. Before this latest update, the analysts had been forecasting revenues of €86m and earnings per share (EPS) of €0.33 in 2025. So we can see that the consensus has become notably more bearish on Genfit's outlook with these numbers, making a pretty serious reduction 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.

Check out our latest analysis for Genfit

The consensus price target fell 7.4% to €8.78, with the analysts clearly concerned about the company following the weaker revenue and earnings outlook.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Genfit's past performance and to peers in the same industry. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 35% by the end of 2025. This indicates a significant reduction from annual growth of 15% 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 22% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Genfit is expected to lag the wider industry.

The Bottom Line

The most important thing to take away is that analysts are expecting Genfit to become unprofitable this year. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. After such a stark change in sentiment from analysts, we'd understand if readers now felt a bit wary of Genfit.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Genfit analysts - going out to 2027, and you can see them 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 backed by insiders.

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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.