Revenue Downgrade: Here's What Analysts Forecast For Seri Industrial S.p.A. (BIT:SERI)

The analysts covering Seri Industrial S.p.A. (BIT:SERI) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. 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 twin analysts covering Seri Industrial are now predicting revenues of €274m in 2023. If met, this would reflect a sizeable 47% improvement in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing €333m of revenue in 2023. It looks like forecasts have become a fair bit less optimistic on Seri Industrial, given the measurable cut to revenue estimates.

Check out our latest analysis for Seri Industrial

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's clear from the latest estimates that Seri Industrial's rate of growth is expected to accelerate meaningfully, with the forecast 47% annualised revenue growth to the end of 2023 noticeably faster than its historical growth of 12% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.0% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Seri Industrial is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that analysts cut their revenue estimates for this year. Analysts also expect revenues to grow faster than the wider market. Overall, given the drastic downgrade to this year's forecasts, we'd be feeling a little more wary of Seri Industrial going forwards.

Of course, there's always more to the story. We have estimates for Seri Industrial from its twin analysts out until 2024, 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. 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.