One Winton Land Limited (NZSE:WIN) Analyst Just Cut Their EPS Forecasts

The latest analyst coverage could presage a bad day for Winton Land Limited (NZSE:WIN), 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) forecasts went under the knife, suggesting the analyst has soured majorly on the business. The stock price has risen 5.0% to NZ$2.50 over the past week. We'd be curious to see if the downgrade is enough to reverse investor sentiment on the business.

Following the latest downgrade, the current consensus, from the solo analyst covering Winton Land, is for revenues of NZ$167m in 2024, which would reflect a considerable 18% reduction in Winton Land's sales over the past 12 months. Statutory earnings per share are anticipated to shrink 8.0% to NZ$0.12 in the same period. Previously, the analyst had been modelling revenues of NZ$185m and earnings per share (EPS) of NZ$0.14 in 2024. Indeed, we can see that the analyst is a lot more bearish about Winton Land's prospects, administering a measurable cut to revenue estimates and slashing their EPS estimates to boot.

See our latest analysis for Winton Land

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. One more thing stood out to us about these estimates, and it's the idea that Winton Land's decline is expected to accelerate, with revenues forecast to fall at an annualised rate of 18% to the end of 2024. This tops off a historical decline of 1.8% a year over the past year. Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 7.8% annually. So it's pretty clear that, while it does have declining revenues, the analyst also expect Winton Land to suffer worse 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 the analyst also downgraded their revenue estimates, and industry data suggests that Winton Land's revenues are expected to grow slower than the wider market. We wouldn't be surprised to find shareholders feeling a bit shell-shocked, after these downgrades. It looks like the analyst has become a lot more bearish on Winton Land, and their negativity could be grounds for caution.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2026, which can be seen for 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.