One Wedia SA (EPA:ALWED) Analyst Is Reducing Their Forecasts For This Year

One thing we could say about the covering analyst on Wedia SA (EPA:ALWED) - 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.

After this downgrade, Wedia's solo analyst is now forecasting revenues of €18m in 2023. This would be an okay 3.0% improvement in sales compared to the last 12 months. Statutory earnings per share are anticipated to nosedive 75% to €0.20 in the same period. Previously, the analyst had been modelling revenues of €21m and earnings per share (EPS) of €0.60 in 2023. Indeed, we can see that the analyst is a lot more bearish about Wedia's prospects, administering a measurable cut to revenue estimates and slashing their EPS estimates to boot.

Check out our latest analysis for Wedia

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's pretty clear that there is an expectation that Wedia's revenue growth will slow down substantially, with revenues to the end of 2023 expected to display 3.0% growth on an annualised basis. This is compared to a historical growth rate of 15% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 7.6% annually. Factoring in the forecast slowdown in growth, it seems obvious that Wedia 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. Unfortunately the analyst also downgraded their revenue estimates, and industry data suggests that Wedia's revenues are expected to grow slower than the wider market. Given the serious cut to this year's outlook, it's clear that the analyst has turned more bearish on Wedia, and we wouldn't blame shareholders for feeling a little more cautious themselves.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Wedia going out as far as 2025, 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 that insiders are buying.

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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.