Leone Film Group S.p.A.'s (BIT:LFG) Analyst Just Slashed This Year's Estimates

The analyst covering Leone Film Group S.p.A. (BIT:LFG) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. Revenue and earnings per share (EPS) forecasts were both revised downwards, with the analyst seeing grey clouds on the horizon.

Following the downgrade, the consensus from solitary analyst covering Leone Film Group is for revenues of €49m in 2022, implying a disturbing 27% decline in sales compared to the last 12 months. Statutory earnings per share are anticipated to nosedive 62% to €0.18 in the same period. Previously, the analyst had been modelling revenues of €76m and earnings per share (EPS) of €0.26 in 2022. It looks like analyst sentiment has declined substantially, with a sizeable cut to revenue estimates and a pretty serious decline to earnings per share numbers as well.

Check out our latest analysis for Leone Film Group

It'll come as no surprise then, to learn that the analyst has cut their price target 17% to €3.00.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Leone Film Group's past performance and to peers in the same industry. One more thing stood out to us about these estimates, and it's the idea that Leone Film Group's decline is expected to accelerate, with revenues forecast to fall at an annualised rate of 47% to the end of 2022. This tops off a historical decline of 4.0% a year over the past five years. Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 8.9% annually. So while a broad number of companies are forecast to grow, unfortunately Leone Film Group is expected to see its sales affected worse than other companies in the 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 Leone Film Group. Unfortunately the analyst also downgraded their revenue estimates, and industry data suggests that Leone Film Group's revenues are expected to grow slower than the wider market. Given the scope of the downgrades, it would not be a surprise to see the market become more wary of the business.

That said, the analyst might have good reason to be negative on Leone Film Group, given a weak balance sheet. Learn more, and discover the 3 other concerns we've identified, for free on our platform here.

You can also see our analysis of Leone Film Group's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.