Analysts Are More Bearish On Standard Supply AS (OB:STSU) Than They Used To Be

Market forces rained on the parade of Standard Supply AS (OB:STSU) shareholders today, when the analysts downgraded their forecasts for next year. Revenue and earnings per share (EPS) forecasts were both revised downwards, with analysts seeing grey clouds on the horizon.

Following the latest downgrade, the dual analysts covering Standard Supply provided consensus estimates of US$24m revenue in 2024, which would reflect a substantial 41% decline on its sales over the past 12 months. Statutory earnings per share are anticipated to dive 44% to US$0.024 in the same period. Prior to this update, the analysts had been forecasting revenues of US$46m and earnings per share (EPS) of US$0.069 in 2024. Indeed, we can see that the analysts are a lot more bearish about Standard Supply's prospects, administering a pretty serious reduction to revenue estimates and slashing their EPS estimates to boot.

Check out our latest analysis for Standard Supply

The consensus price target fell 12% to kr6.10, 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. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 34% by the end of 2024. This indicates a significant reduction from annual growth of 53% over the last three years. Yet aggregate analyst estimates for other companies in the industry suggest that industry revenues are forecast to decline 3.4% per year. The forecasts do look bearish for Standard Supply, 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 downgraded their revenue estimates, and our aggregation of analyst estimates suggests that Standard Supply revenue is expected to perform worse than the wider market. With a serious cut to next year's expectations and a falling price target, we wouldn't be surprised if investors were becoming wary of Standard Supply.

There might be good reason for analyst bearishness towards Standard Supply, like concerns around earnings quality. For more information, you can click here to discover this and the 1 other warning sign we've identified.

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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.