Bearish: This Analyst Is Revising Their ATON Green Storage S.p.A. (BIT:ATON) Revenue and EPS Prognostications

One thing we could say about the covering analyst on ATON Green Storage S.p.A. (BIT:ATON) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting the analyst has soured majorly on the business.

After the downgrade, the consensus from ATON Green Storage's one analyst is for revenues of €39m in 2024, which would reflect a definite 19% decline in sales compared to the last year of performance. Statutory earnings per share are anticipated to tumble 28% to €0.53 in the same period. Previously, the analyst had been modelling revenues of €58m and earnings per share (EPS) of €0.88 in 2024. It looks like analyst sentiment has declined substantially, with a pretty serious reduction to revenue estimates and a pretty serious decline to earnings per share numbers as well.

View our latest analysis for ATON Green Storage

The analyst made no major changes to their price target of €7.40, suggesting the downgrades are not expected to have a long-term impact on ATON Green Storage's 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. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 19% by the end of 2024. This indicates a significant reduction from annual growth of 18% over the last year. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 4.5% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - ATON Green Storage is expected to lag the wider industry.

The Bottom Line

The biggest issue in the new estimates is that the analyst has reduced their earnings per share estimates, suggesting business headwinds lay ahead for ATON Green Storage. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. The lack of change in the price target is puzzling in light of the downgrade but, with a serious decline expected this year, we wouldn't be surprised if investors were a bit wary of ATON Green Storage.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

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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