Clasquin SA (EPA:ALCLA) Analysts Just Trimmed Their Revenue Forecasts By 25%

The latest analyst coverage could presage a bad day for Clasquin SA (EPA:ALCLA), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Revenue estimates were cut sharply as the analysts signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well.

Following the downgrade, the consensus from three analysts covering Clasquin is for revenues of €537m in 2023, implying a sizeable 39% decline in sales compared to the last 12 months. Statutory earnings per share are anticipated to plummet 38% to €5.87 in the same period. Before this latest update, the analysts had been forecasting revenues of €713m and earnings per share (EPS) of €5.87 in 2023. So there's been a clear change in analyst sentiment in the recent update, with the analysts making a sizeable cut to revenues and reconfirming their earnings per share estimates.

Check out our latest analysis for Clasquin

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that sales are expected to reverse, with a forecast 63% annualised revenue decline to the end of 2023. That is a notable change from historical growth of 27% 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 1.9% per year. It's pretty clear that Clasquin's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with analysts reconfirming that earnings per share are expected to continue performing in line with their prior expectations. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that Clasquin's revenues are expected to grow slower than the wider market. Often, one downgrade can set off a daisy-chain of cuts, especially if an industry is in decline. So we wouldn't be surprised if the market became a lot more cautious on Clasquin after today.

Unfortunately, by using these new estimates as a starting point, we've run a discounted cash flow calculation (DCF) on Clasquin that suggests the company could be somewhat overvalued. Learn why, and examine the assumptions that underpin our valuation by visiting our free platform here to learn more about our valuation approach.

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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