The Consensus EPS Estimates For Terna Energy Societe Anonyme Commercial Technical Company (ATH:TENERGY) Just Fell A Lot

The latest analyst coverage could presage a bad day for Terna Energy Societe Anonyme Commercial Technical Company (ATH:TENERGY), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Revenue and earnings per share (EPS) forecasts were both revised downwards, with the analysts seeing grey clouds on the horizon.

Following the latest downgrade, the current consensus, from the five analysts covering Terna Energy Societe Anonyme Commercial Technical, is for revenues of €268m in 2021, which would reflect a not inconsiderable 20% reduction in Terna Energy Societe Anonyme Commercial Technical's sales over the past 12 months. Losses are presumed to reduce, shrinking 16% from last year to €0.22. Previously, the analysts had been modelling revenues of €347m and earnings per share (EPS) of €0.42 in 2021. There looks to have been a major change in sentiment regarding Terna Energy Societe Anonyme Commercial Technical's prospects, with a sizeable cut to revenues and the analysts now forecasting a loss instead of a profit.

Check out our latest analysis for Terna Energy Societe Anonyme Commercial Technical

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 25% by the end of 2021. This indicates a significant reduction from annual growth of 8.7% 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 10% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Terna Energy Societe Anonyme Commercial Technical is expected to lag the wider industry.

The Bottom Line

The biggest low-light for us was that the forecasts for Terna Energy Societe Anonyme Commercial Technical dropped from profits to a loss this year. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that Terna Energy Societe Anonyme Commercial Technical's revenues are expected to grow slower than the wider market. After a cut like that, investors could be forgiven for thinking analysts are a lot more bearish on Terna Energy Societe Anonyme Commercial Technical, and a few readers might choose to steer clear of the stock.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have estimates - from multiple Terna Energy Societe Anonyme Commercial Technical analysts - going out to 2023, and you can see them free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.

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