News Flash: 6 Analysts Think Okeanis Eco Tankers Corp. (OB:OET) Earnings Are Under Threat

The analysts covering Okeanis Eco Tankers Corp. (OB:OET) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for next year. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting the analysts have soured majorly on the business.

Following the latest downgrade, the six analysts covering Okeanis Eco Tankers provided consensus estimates of US$279m revenue in 2025, which would reflect a disturbing 30% decline on its sales over the past 12 months. Statutory earnings per share are presumed to accumulate 5.1% to US$3.82. Prior to this update, the analysts had been forecasting revenues of US$318m and earnings per share (EPS) of US$6.00 in 2025. Indeed, we can see that the analysts are a lot more bearish about Okeanis Eco Tankers' prospects, administering a measurable cut to revenue estimates and slashing their EPS estimates to boot.

View our latest analysis for Okeanis Eco Tankers

Analysts made no major changes to their price target of US$35.24, suggesting the downgrades are not expected to have a long-term impact on Okeanis Eco Tankers' valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Okeanis Eco Tankers analyst has a price target of US$43.33 per share, while the most pessimistic values it at US$28.91. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

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. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 25% by the end of 2025. This indicates a significant reduction from annual growth of 19% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue decline 5.6% annually for the foreseeable future. The forecasts do look bearish for Okeanis Eco Tankers, since they're expecting it to shrink faster than the industry.

The Bottom Line

The most important thing to take away is that analysts cut their earnings per share estimates, expecting a clear decline in business conditions. Unfortunately they also cut their revenue estimates for next year, and they expect sales to lag the wider market. That said, earnings per share are more important for creating value for shareholders. We're also surprised to see that the price target went unchanged. Still, deteriorating business conditions (assuming accurate forecasts!) can be a leading indicator for the stock price, so we wouldn't blame investors for being more cautious on Okeanis Eco Tankers after the downgrade.

Unfortunately, the earnings downgrade - if accurate - may also place pressure on Okeanis Eco Tankers' mountain of debt, which could lead to some belt tightening for shareholders. See why we're concerned about Okeanis Eco Tankers' balance sheet by visiting our risks dashboard for free on our platform here.

You can also see our analysis of Okeanis Eco Tankers' Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.