This Analyst Just Downgraded Their Awilco LNG ASA (OB:ALNG) EPS Forecasts

The latest analyst coverage could presage a bad day for Awilco LNG ASA (OB:ALNG), with the covering analyst making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Both revenue and earnings per share (EPS) estimates were cut sharply as the analyst factored in the latest outlook for the business, concluding that they were too optimistic previously.

Following the latest downgrade, the lone analyst covering Awilco LNG provided consensus estimates of US$65m revenue in 2024, which would reflect a painful 21% decline on its sales over the past 12 months. Statutory earnings per share are anticipated to dive 58% to US$0.11 in the same period. Prior to this update, the analyst had been forecasting revenues of US$73m and earnings per share (EPS) of US$0.17 in 2024. Indeed, we can see that the analyst is a lot more bearish about Awilco LNG's prospects, administering a measurable cut to revenue estimates and slashing their EPS estimates to boot.

See our latest analysis for Awilco LNG

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 sales are expected to reverse, with a forecast 38% annualised revenue decline to the end of 2024. That is a notable change from historical growth of 18% over the last five years. Yet aggregate analyst estimates for other companies in the industry suggest that industry revenues are forecast to decline 4.7% per year. So it's pretty clear that Awilco LNG's revenues are expected to shrink faster than 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. Unfortunately they also downgraded their revenue estimates, and our aggregation of analyst estimates suggests that Awilco LNG revenue is expected to perform worse than the wider market. After a cut like that, investors could be forgiven for thinking the analyst is a lot more bearish on Awilco LNG, and a few readers might choose to steer clear of the stock.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have analyst estimates for Awilco LNG going out as far as 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 with high insider ownership.

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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.