One thing we could say about the analysts on STV Group plc (LON:STVG) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Revenue estimates were cut sharply as the analysts signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well.
After the downgrade, the consensus from STV Group's four analysts is for revenues of UK£169m in 2025, which would reflect a definite 10% decline in sales compared to the last year of performance. Prior to the latest estimates, the analysts were forecasting revenues of UK£202m in 2025. It looks like forecasts have become a fair bit less optimistic on STV Group, given the measurable cut to revenue estimates.
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These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the STV Group's past performance and to peers in the same industry. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 10% by the end of 2025. This indicates a significant reduction from annual growth of 11% 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 0.5% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - STV Group is expected to lag the wider industry.
The Bottom Line
The clear low-light was that analysts slashing their revenue forecasts for STV Group this year. They're also anticipating slower revenue growth 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 STV Group after today.
Still got questions? At least one of STV Group's four analysts has provided estimates out to 2027, which can be seen for 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.