Need To Know: The Consensus Just Cut Its Anglo Pacific Group plc (LON:APF) Estimates For 2022

The latest analyst coverage could presage a bad day for Anglo Pacific Group plc (LON:APF), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. There was a fairly draconian cut to their revenue estimates, perhaps an implicit admission that previous forecasts were much too optimistic.

Following the downgrade, the consensus from two analysts covering Anglo Pacific Group is for revenues of US$75m in 2022, implying an uncomfortable 12% decline in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing US$91m of revenue in 2022. It looks like forecasts have become a fair bit less optimistic on Anglo Pacific Group, given the substantial drop in revenue estimates.

See our latest analysis for Anglo Pacific Group

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that sales are expected to reverse, with a forecast 12% annualised revenue decline to the end of 2022. That is a notable change from historical growth of 8.0% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue decline 4.2% annually for the foreseeable future. The forecasts do look bearish for Anglo Pacific Group, since they're expecting it to shrink faster than the industry.

The Bottom Line

The most important thing to take away is that analysts cut their revenue estimates for this year. They're also forecasting for revenues to shrink at a quicker rate than companies in the wider market. Overall, given the drastic downgrade to this year's forecasts, we'd be feeling a little more wary of Anglo Pacific Group going forwards.

There might be good reason for analyst bearishness towards Anglo Pacific Group, like concerns around earnings quality. For more information, you can click here to discover this and the 3 other flags we've identified.

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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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.