This Analyst Just Downgraded Their CBo Territoria Société Anonyme (EPA:CBOT) EPS Forecasts

One thing we could say about the covering analyst on CBo Territoria Société Anonyme (EPA:CBOT) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Revenue and earnings per share (EPS) forecasts were both revised downwards, with the analyst seeing grey clouds on the horizon.

Following the latest downgrade, the current consensus, from the lone analyst covering CBo Territoria Société Anonyme, is for revenues of €85m in 2021, which would reflect a chunky 15% reduction in CBo Territoria Société Anonyme's sales over the past 12 months. Statutory earnings per share are presumed to shoot up 23% to €0.40. Prior to this update, the analyst had been forecasting revenues of €104m and earnings per share (EPS) of €0.54 in 2021. Indeed, we can see that the analyst is a lot more bearish about CBo Territoria Société Anonyme's prospects, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.

Check out our latest analysis for CBo Territoria Société Anonyme

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. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 15% by the end of 2021. This indicates a significant reduction from annual growth of 11% 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 3.9% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - CBo Territoria Société Anonyme is expected to lag the wider industry.

The Bottom Line

The most important thing to take away is that the analyst cut their earnings per share estimates, expecting a clear decline in business conditions. Unfortunately the analyst also downgraded their revenue estimates, and industry data suggests that CBo Territoria Société Anonyme's revenues are expected to grow slower than the wider market. We wouldn't be surprised to find shareholders feeling a bit shell-shocked, after these downgrades. It looks like the analyst has become a lot more bearish on CBo Territoria Société Anonyme, and their negativity could be grounds for caution.

After a downgrade like this, it's pretty clear that previous forecasts were too optimistic. What's more, we've spotted several possible issues with CBo Territoria Société Anonyme's business, like dilutive stock issuance over the past year. For more information, you can click here to discover this and the 1 other concern we've identified.

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