Analysts Just Slashed Their BEWI ASA (OB:BEWI) Earnings Forecasts

Today is shaping up negative for BEWI ASA (OB:BEWI) shareholders, with the analysts delivering a substantial negative revision to this year's forecasts. Revenue and earnings per share (EPS) forecasts were both revised downwards, with the analysts seeing grey clouds on the horizon.

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Following the downgrade, the current consensus from BEWI's three analysts is for revenues of €863m in 2025 which - if met - would reflect a meaningful 11% increase on its sales over the past 12 months. The loss per share is anticipated to greatly reduce in the near future, narrowing 69% to €0.063. Previously, the analysts had been modelling revenues of €1.1b and earnings per share (EPS) of €0.046 in 2025. There looks to have been a major change in sentiment regarding BEWI's prospects, with a pretty serious reduction to revenues and the analysts now forecasting a loss instead of a profit.

See our latest analysis for BEWI

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting BEWI's growth to accelerate, with the forecast 15% annualised growth to the end of 2025 ranking favourably alongside historical growth of 11% per annum 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 5.1% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect BEWI to grow faster than the wider industry.

The Bottom Line

The biggest low-light for us was that the forecasts for BEWI dropped from profits to a loss this year. While analysts did downgrade their revenue estimates, these forecasts still imply revenues will perform better than the wider market. After a cut like that, investors could be forgiven for thinking analysts are a lot more bearish on BEWI, and a few readers might choose to steer clear of the stock.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for BEWI going out to 2027, 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 backed by insiders.

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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.