Saras S.p.A. (BIT:SRS) Analysts Just Slashed This Year's Revenue Estimates By 16%

The analysts covering Saras S.p.A. (BIT:SRS) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.

After the downgrade, the consensus from Saras' three analysts is for revenues of €11b in 2023, which would reflect an uneasy 19% decline in sales compared to the last year of performance. Prior to the latest estimates, the analysts were forecasting revenues of €13b in 2023. The consensus view seems to have become more pessimistic on Saras, noting the measurable cut to revenue estimates in this update.

View our latest analysis for Saras

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 19% by the end of 2023. This indicates a significant reduction from annual growth of 9.6% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue decline 5.4% annually for the foreseeable future. The forecasts do look bearish for Saras, since they're expecting it to shrink faster than the industry.

The Bottom Line

The most important thing to take away is that analysts cut their revenue estimates for this year. They're also forecasting for revenues to shrink at a quicker rate than companies in the wider market. Often, one downgrade can set off a daisy-chain of cuts, especially if an industry is in decline. So we wouldn't be surprised if the market became a lot more cautious on Saras after today.

Of course, there's always more to the story. We have estimates for Saras from its three analysts out until 2025, and you can see them 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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