The Pyrum Innovations AG (OB:PYRUM) Analysts Have Been Trimming Their Sales Forecasts

The analysts covering Pyrum Innovations AG (OB:PYRUM) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. There was a fairly draconian cut to their revenue estimates, perhaps an implicit admission that previous forecasts were much too optimistic.

After the downgrade, the consensus from Pyrum Innovations' two analysts is for revenues of €4.4m in 2023, which would reflect a substantial 72% decline in sales compared to the last year of performance. Prior to the latest estimates, the analysts were forecasting revenues of €5.1m in 2023. It looks like forecasts have become a fair bit less optimistic on Pyrum Innovations, given the measurable cut to revenue estimates.

See our latest analysis for Pyrum Innovations

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that sales are expected to reverse, with a forecast 72% annualised revenue decline to the end of 2023. That is a notable change from historical growth of 486% over the last year. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 17% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Pyrum Innovations is expected to lag the wider industry.

The Bottom Line

The most important thing to take away is that analysts cut their revenue estimates for this year. They're also anticipating slower revenue growth than the wider market. Given the stark change in sentiment, we'd understand if investors became more cautious on Pyrum Innovations after today.

Want to learn more? We have estimates for Pyrum Innovations from its two analysts out until 2025, and you can see them 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.

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.