One Analyst Just Shaved Their ArcticZymes Technologies ASA (OB:AZT) Forecasts Dramatically

One thing we could say about the covering analyst on ArcticZymes Technologies ASA (OB:AZT) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. 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, ArcticZymes Technologies' lone analyst currently expects revenues in 2023 to be kr152m, approximately in line with the last 12 months. Statutory earnings per share are anticipated to descend 12% to kr0.83 in the same period. Before this latest update, the analyst had been forecasting revenues of kr203m and earnings per share (EPS) of kr1.58 in 2023. It looks like analyst sentiment has declined substantially, with a sizeable cut to revenue estimates and a pretty serious decline to earnings per share numbers as well.

Check out our latest analysis for ArcticZymes Technologies

The consensus price target fell 47% to kr50.00, with the weaker earnings outlook clearly leading analyst valuation estimates.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's pretty clear that there is an expectation that ArcticZymes Technologies' revenue growth will slow down substantially, with revenues to the end of 2023 expected to display 1.0% growth on an annualised basis. This is compared to a historical growth rate of 18% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 77% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than ArcticZymes Technologies.

The Bottom Line

The biggest issue in the new estimates is that the analyst has reduced their earnings per share estimates, suggesting business headwinds lay ahead for ArcticZymes Technologies. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. After such a stark change in sentiment from the analyst, we'd understand if readers now felt a bit wary of ArcticZymes Technologies.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for ArcticZymes Technologies going out as far as 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.

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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.