Analysts Have Just Cut Their Sogefi S.p.A. (BIT:SGF) Revenue Estimates By 12%

One thing we could say about the analysts on Sogefi S.p.A. (BIT:SGF) - 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.

Following the latest downgrade, the three analysts covering Sogefi provided consensus estimates of €1.5b revenue in 2024, which would reflect a chunky 9.2% decline on its sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of €1.7b in 2024. The consensus view seems to have become more pessimistic on Sogefi, noting the substantial drop in revenue estimates in this update.

See our latest analysis for Sogefi

There was no particular change to the consensus price target of €3.90, with Sogefi's latest outlook seemingly not enough to result in a change of valuation.

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. We would highlight that sales are expected to reverse, with a forecast 12% annualised revenue decline to the end of 2024. That is a notable change from historical growth of 3.2% 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 2.6% annually for the foreseeable future. It's pretty clear that Sogefi's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The clear low-light was that analysts slashing their revenue forecasts for Sogefi this year. They also expect company revenue to perform worse than the wider market. Given the stark change in sentiment, we'd understand if investors became more cautious on Sogefi after today.

After a downgrade like this, it's pretty clear that previous forecasts were too optimistic. What's more, we've spotted several possible issues with Sogefi's business, like a weak balance sheet. For more information, you can click here to discover this and the 2 other risks we've identified.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months 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.