Analysts Just Slashed Their MOL Magyar Olaj- és Gázipari Nyilvánosan Muködo Részvénytársaság (BUSE:MOL) EPS Numbers

Today is shaping up negative for MOL Magyar Olaj- és Gázipari Nyilvánosan Muködo Részvénytársaság (BUSE:MOL) shareholders, with the analysts delivering a substantial negative revision to this year's forecasts. Revenue and earnings per share (EPS) forecasts were both revised downwards, with analysts seeing grey clouds on the horizon.

Following the latest downgrade, the current consensus, from the twelve analysts covering MOL Magyar Olaj- és Gázipari Nyilvánosan Muködo Részvénytársaság, is for revenues of Ft4.0t in 2021, which would reflect a considerable 13% reduction in MOL Magyar Olaj- és Gázipari Nyilvánosan Muködo Részvénytársaság's sales over the past 12 months. Statutory earnings per share are anticipated to sink 20% to Ft399 in the same period. Before this latest update, the analysts had been forecasting revenues of Ft5.3t and earnings per share (EPS) of Ft443 in 2021. Indeed, we can see that the analysts are a lot more bearish about MOL Magyar Olaj- és Gázipari Nyilvánosan Muködo Részvénytársaság's prospects, administering a pretty serious reduction to revenue estimates and slashing their EPS estimates to boot.

View our latest analysis for MOL Magyar Olaj- és Gázipari Nyilvánosan Muködo Részvénytársaság

Despite the cuts to forecast earnings, there was no real change to the Ft2,666 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on MOL Magyar Olaj- és Gázipari Nyilvánosan Muködo Részvénytársaság, with the most bullish analyst valuing it at Ft3,100 and the most bearish at Ft2,224 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the MOL Magyar Olaj- és Gázipari Nyilvánosan Muködo Részvénytársaság's past performance and to peers in the same industry. We would highlight that sales are expected to reverse, with a forecast 23% annualised revenue decline to the end of 2021. That is a notable change from historical growth of 5.0% 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 2.5% per year. It's pretty clear that MOL Magyar Olaj- és Gázipari Nyilvánosan Muködo Részvénytársaság's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to take away is that analysts cut their earnings per share estimates, expecting a clear decline in business conditions. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that MOL Magyar Olaj- és Gázipari Nyilvánosan Muködo Részvénytársaság's revenues are expected to grow slower than the wider market. We're also surprised to see that the price target went unchanged. Still, deteriorating business conditions (assuming accurate forecasts!) can be a leading indicator for the stock price, so we wouldn't blame investors for being more cautious on MOL Magyar Olaj- és Gázipari Nyilvánosan Muködo Részvénytársaság after the downgrade.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for MOL Magyar Olaj- és Gázipari Nyilvánosan Muködo Részvénytársaság 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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This article by Simply Wall St is general in nature. 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.
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