Some Pattern S.p.A. (BIT:PTR) Analysts Just Made A Major Cut To Next Year's Estimates

Today is shaping up negative for Pattern S.p.A. (BIT:PTR) 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.

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Following the latest downgrade, the three analysts covering Pattern provided consensus estimates of €114m revenue in 2025, which would reflect an uncomfortable 9.3% decline on its sales over the past 12 months. Following this this downgrade, earnings are now expected to tip over into loss-making territory, with the analysts forecasting losses of €0.20 per share in 2025. Prior to this update, the analysts had been forecasting revenues of €150m and earnings per share (EPS) of €0.29 in 2025. There looks to have been a major change in sentiment regarding Pattern's prospects, with a pretty serious reduction to revenues and the analysts now forecasting a loss instead of a profit.

View our latest analysis for Pattern

The consensus price target fell 8.9% to €6.80, with the analysts clearly concerned about the company following the weaker revenue and earnings outlook.

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 9.3% by the end of 2025. This indicates a significant reduction from annual growth of 23% 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 8.1% per year. It's pretty clear that Pattern'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 are expecting Pattern to become unprofitable this year. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that Pattern's revenues are expected to grow slower than the wider market. With a serious cut to this year's expectations and a falling price target, we wouldn't be surprised if investors were becoming wary of Pattern.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have estimates - from multiple Pattern analysts - going out to 2027, and you can see them free 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.