Newsflash: Fiera Milano SpA (BIT:FM) Analysts Have Been Trimming Their Revenue Forecasts

Market forces rained on the parade of Fiera Milano SpA (BIT:FM) shareholders today, when the analysts downgraded their forecasts for this year. There was a fairly draconian cut to their revenue estimates, perhaps an implicit admission that previous forecasts were much too optimistic.

After the downgrade, the twin analysts covering Fiera Milano are now predicting revenues of €151m in 2021. If met, this would reflect a sizeable 447% improvement in sales compared to the last 12 months. The loss per share is anticipated to greatly reduce in the near future, narrowing 75% to €0.12. However, before this estimates update, the consensus had been expecting revenues of €186m and €0.12 per share in losses. So there's definitely been a change in sentiment in this update, with the analysts administering a substantial haircut to this year's revenue estimates, while at the same time holding losses per share steady.

See our latest analysis for Fiera Milano

Of course, another way to look at these forecasts is to place them into context against the industry itself. One thing stands out from these estimates, which is that Fiera Milano is forecast to grow faster in the future than it has in the past, with revenues expected to display 4x annualised growth until the end of 2021. If achieved, this would be a much better result than the 13% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 8.0% per year. Not only are Fiera Milano's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.

The Bottom Line

Unfortunately, analysts also downgraded their revenue estimates, although our data indicates revenues are expected to perform better than the wider market. Overall, given the drastic downgrade to this year's forecasts, we'd be feeling a little more wary of Fiera Milano going forwards.

After a downgrade like this one, it's pretty clear that previous forecasts were too optimistic. Worse, it's possible that the forecast future income could struggle to cover Fiera Milano'sdividend payments. You can learn more, and discover the 1 possible risk we've identified, for free on our platform here.

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