This Analyst Just Downgraded Their Streamwide S.A. (EPA:ALSTW) EPS Forecasts

The latest analyst coverage could presage a bad day for Streamwide S.A. (EPA:ALSTW), with the covering analyst making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting the analyst has soured majorly on the business.

After this downgrade, Streamwide's solo analyst is now forecasting revenues of €17m in 2022. This would be a satisfactory 4.1% improvement in sales compared to the last 12 months. Statutory earnings per share are supposed to dive 33% to €0.93 in the same period. Before this latest update, the analyst had been forecasting revenues of €20m and earnings per share (EPS) of €1.58 in 2022. It looks like analyst sentiment has declined substantially, with a measurable cut to revenue estimates and a large cut to earnings per share numbers as well.

Check out our latest analysis for Streamwide

The consensus price target fell 27% to €27.00, with the weaker earnings outlook clearly leading analyst valuation estimates.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that Streamwide's revenue growth is expected to slow, with the forecast 4.1% annualised growth rate until the end of 2022 being well below the historical 19% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 9.8% annually. Factoring in the forecast slowdown in growth, it seems obvious that Streamwide is also expected to grow slower than other industry participants.

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. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower 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 Streamwide.

So things certainly aren't looking great, and you should also know that we've spotted some potential warning signs with Streamwide, including concerns around earnings quality. Learn more, and discover the 1 other flag we've identified, for free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.

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