The Consensus EPS Estimates For Sif Holding N.V. (AMS:SIFG) Just Fell A Lot

The latest analyst coverage could presage a bad day for Sif Holding N.V. (AMS:SIFG), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative. The stock price has risen 5.6% to €10.56 over the past week. It will be interesting to see if this downgrade motivates investors to start selling their holdings.

After this downgrade, Sif Holding's four analysts are now forecasting revenues of €443m in 2022. This would be a satisfactory 4.9% improvement in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing €495m of revenue in 2022. The consensus view seems to have become more pessimistic on Sif Holding, noting the substantial drop in revenue estimates in this update.

See our latest analysis for Sif Holding

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 Sif Holding's rate of growth is expected to accelerate meaningfully, with the forecast 4.9% annualised revenue growth to the end of 2022 noticeably faster than its historical growth of 3.1% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 9.0% per year. It seems obvious that, while the future growth outlook is brighter than the recent past, Sif Holding is expected to grow slower than the wider industry.

The Bottom Line

The clear low-light was that analysts slashing their revenue forecasts for Sif Holding this year. They also expect company revenue to perform worse than the wider market. We wouldn't be surprised to find shareholders feeling a bit shell-shocked, after these downgrades. It looks like analysts have become a lot more bearish on Sif Holding, and their negativity could be grounds for caution.

Unsatisfied? At least one of Sif Holding's four analysts has provided estimates out to 2024, which can be seen 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.