Earnings Update: Innelec Multimédia SA (EPA:ALINN) Just Reported And Analysts Are Trimming Their Forecasts

There's been a major selloff in Innelec Multimédia SA (EPA:ALINN) shares in the week since it released its yearly report, with the stock down 29% to €5.10. It was an okay report, and revenues came in at €187m, approximately in line with analyst estimates leading up to the results announcement. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Innelec Multimédia

Following the recent earnings report, the consensus from two analysts covering Innelec Multimédia is for revenues of €169.7m in 2025. This implies a considerable 9.3% decline in revenue compared to the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of €183.8m and earnings per share (EPS) of €0.93 in 2025. Overall, while there's been a small dip in revenue estimates, the consensus now no longer provides an EPS estimate. This implies that the market believes revenue is more important following the latest results.

Intriguingly,the analysts have cut their price target 13% to €9.00 showing a clear decline in sentiment around Innelec Multimédia's valuation.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 9.3% by the end of 2025. This indicates a significant reduction from annual growth of 13% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 18% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Innelec Multimédia is expected to lag the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their revenue estimates for next year. Unfortunately, they also downgraded their revenue estimates, and our data indicates it is expected to perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Innelec Multimédia's future valuation.

We have estimates for Innelec Multimédia from its two analysts out to 2027, and you can see them free on our platform here.

Before you take the next step you should know about the 5 warning signs for Innelec Multimédia (1 can't be ignored!) that we have uncovered.

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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.

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