Analysts Just Slashed Their Icape Holding S.A. (EPA:ALICA) EPS Numbers

Today is shaping up negative for Icape Holding S.A. (EPA:ALICA) shareholders, with the analysts delivering a substantial negative revision to this year's forecasts. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting the analysts have soured majorly on the business.

Following the downgrade, the consensus from two analysts covering Icape Holding is for revenues of €186m in 2023, implying a definite 9.8% decline in sales compared to the last 12 months. Statutory earnings per share are supposed to plummet 26% to €0.77 in the same period. Before this latest update, the analysts had been forecasting revenues of €209m and earnings per share (EPS) of €0.98 in 2023. Indeed, we can see that the analysts are a lot more bearish about Icape Holding's prospects, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.

Check out our latest analysis for Icape Holding

It'll come as no surprise then, to learn that the analysts have cut their price target 11% to €18.50.

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 19% by the end of 2023. This indicates a significant reduction from annual growth of 0.3% over the last year. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 19% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Icape Holding is expected to lag the wider industry.

The Bottom Line

The biggest issue in the new estimates is that analysts have reduced their earnings per share estimates, suggesting business headwinds lay ahead for Icape Holding. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that Icape Holding's revenues are expected to grow 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 Icape Holding.

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