News Flash: 2 Analysts Think Arverne Group S.A. (EPA:ARVEN) Earnings Are Under Threat

The latest analyst coverage could presage a bad day for Arverne Group S.A. (EPA:ARVEN), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Both revenue and earnings per share (EPS) estimates were cut sharply as analysts factored in the latest outlook for the business, concluding that they were too optimistic previously.

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Following the downgrade, the most recent consensus for Arverne Group from its two analysts is for revenues of €17m in 2025 which, if met, would be a substantial 71% increase on its sales over the past 12 months. Losses are predicted to fall substantially, shrinking 58% to €0.63 per share. Yet prior to the latest estimates, the analysts had been forecasting revenues of €27m and losses of €0.51 per share in 2025. So there's been quite a change-up of views after the recent consensus updates, with the analysts making a serious cut to their revenue forecasts while also expecting losses per share to increase.

Check out our latest analysis for Arverne Group

The consensus price target fell 7.8% to €7.83, with the analysts clearly concerned about the company following the weaker revenue and earnings outlook.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Arverne Group's past performance and to peers in the same industry. One thing stands out from these estimates, which is that Arverne Group is forecast to grow faster in the future than it has in the past, with revenues expected to display 71% annualised growth until the end of 2025. If achieved, this would be a much better result than the 5.8% annual decline over the past year. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 1.2% per year. So it looks like Arverne Group is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The most important thing to note from this downgrade is that the consensus increased its forecast losses this year, suggesting all may not be well at Arverne Group. While analysts did downgrade their revenue estimates, these forecasts still imply revenues will perform better than the wider market. Given the scope of the downgrades, it would not be a surprise to see the market become more wary of the business.

Still, the long-term prospects of the business are much more relevant than next year's earnings. At least one analyst has provided forecasts out to 2026, which can be seen 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 with high insider ownership.

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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.