Doxee S.p.A. (BIT:DOX) Analysts Are Reducing Their Forecasts For This Year

Today is shaping up negative for Doxee S.p.A. (BIT:DOX) shareholders, with the analysts delivering a substantial negative revision to this year's forecasts. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting the analysts have soured majorly on the business.

Following the downgrade, the latest consensus from Doxee's three analysts is for revenues of €30m in 2023, which would reflect a credible 2.4% improvement in sales compared to the last 12 months. Losses are predicted to fall substantially, shrinking 66% to €0.09 per share. Previously, the analysts had been modelling revenues of €34m and earnings per share (EPS) of €0.26 in 2023. There looks to have been a major change in sentiment regarding Doxee's prospects, with a measurable cut to revenues and the analysts now forecasting a loss instead of a profit.

See our latest analysis for Doxee

The consensus price target fell 8.3% to €11.39, with the analysts clearly concerned about the company following the weaker revenue and earnings outlook.

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. We would highlight that Doxee's revenue growth is expected to slow, with the forecast 2.4% annualised growth rate until the end of 2023 being well below the historical 11% p.a. growth over the last three years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 11% per year. Factoring in the forecast slowdown in growth, it seems obvious that Doxee is also expected to grow slower than other industry participants.

The Bottom Line

The biggest low-light for us was that the forecasts for Doxee dropped from profits to a loss this year. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. After such a stark change in sentiment from analysts, we'd understand if readers now felt a bit wary of Doxee.

There might be good reason for analyst bearishness towards Doxee, like dilutive stock issuance over the past year. Learn more, and discover the 3 other risks we've identified, for 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.