Some Analysts Just Cut Their Iren SpA (BIT:IRE) Estimates

One thing we could say about the analysts on Iren SpA (BIT:IRE) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Revenue estimates were cut sharply as the analysts signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well.

Following the latest downgrade, the current consensus, from the three analysts covering Iren, is for revenues of €6.0b in 2024, which would reflect a noticeable 7.9% reduction in Iren's sales over the past 12 months. Statutory earnings per share are presumed to rise 6.6% to €0.21. Previously, the analysts had been modelling revenues of €8.1b and earnings per share (EPS) of €0.22 in 2024. So there's been a clear change in analyst sentiment in the recent update, with the analysts making a pretty serious reduction to revenues and reconfirming their earnings per share estimates.

View our latest analysis for Iren

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that sales are expected to reverse, with a forecast 7.9% annualised revenue decline to the end of 2024. That is a notable change from historical growth of 16% 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 1.3% per year. It's pretty clear that Iren's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with analysts reconfirming that earnings per share are expected to continue performing in line with their prior expectations. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that Iren's revenues are expected to grow slower than the wider market. Overall, given the drastic downgrade to this year's forecasts, we'd be feeling a little more wary of Iren going forwards.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Iren analysts - going out to 2026, 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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