One Tekmar Group plc (LON:TGP) Analyst Just Cut Their EPS Forecasts

Market forces rained on the parade of Tekmar Group plc (LON:TGP) shareholders today, when the covering analyst downgraded their forecasts for this year. Both revenue and earnings per share (EPS) estimates were cut sharply as the analyst factored in the latest outlook for the business, concluding that they were too optimistic previously.

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After the downgrade, the solo analyst covering Tekmar Group is now predicting revenues of UK£30m in 2025. If met, this would reflect a modest 3.0% improvement in sales compared to the last 12 months. The loss per share is anticipated to greatly reduce in the near future, narrowing 62% to UK£0.02. However, before this estimates update, the consensus had been expecting revenues of UK£33m and UK£0.0096 per share in losses. So there's been quite a change-up of views after the recent consensus updates, with the analyst making a serious cut to their revenue forecasts while also expecting losses per share to increase.

See our latest analysis for Tekmar Group

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. One thing stands out from these estimates, which is that Tekmar Group is forecast to grow faster in the future than it has in the past, with revenues expected to display 3.0% annualised growth until the end of 2025. If achieved, this would be a much better result than the 2.7% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 5.0% annually for the foreseeable future. Although Tekmar Group's revenues are expected to improve, it seems that the analyst is still bearish on the business, forecasting it to grow slower than the broader industry.

The Bottom Line

The most important thing to take away is that the analyst increased their loss per share estimates for this year. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales 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 Tekmar Group, and we wouldn't blame shareholders for feeling a little more cautious themselves.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for Tekmar Group going out as far as 2027, and you can see them free on our platform here.

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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.