The Matica Fintec S.p.A. (BIT:MFT) Analyst Just Cut Their Revenue Forecast By 13%

One thing we could say about the covering analyst on Matica Fintec S.p.A. (BIT:MFT) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.

After this downgrade, Matica Fintec's single analyst is now forecasting revenues of €21m in 2023. This would be a modest 3.8% improvement in sales compared to the last 12 months. Statutory earnings per share are anticipated to reduce 5.9% to €0.24 in the same period. Previously, the analyst had been modelling revenues of €24m and earnings per share (EPS) of €0.26 in 2023. Indeed, we can see that analyst sentiment has declined measurably after the new consensus came out, with a measurable cut to revenue estimates and a small dip in EPS estimates to boot.

Check out our latest analysis for Matica Fintec

The analyst made no major changes to their price target of €4.00, suggesting the downgrades are not expected to have a long-term impact on Matica Fintec's valuation.

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. It's clear from the latest estimates that Matica Fintec's rate of growth is expected to accelerate meaningfully, with the forecast 3.8% annualised revenue growth to the end of 2023 noticeably faster than its historical growth of 2.6% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 3.1% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Matica Fintec is expected to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing to take away is that the analyst cut their earnings per share estimates, expecting a clear decline in business conditions. There was also a drop in their revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider market. Overall, given the drastic downgrade to this year's forecasts, we'd be feeling a little more wary of Matica Fintec going forwards.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have analyst estimates for Matica Fintec going out as far as 2024, 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.