Broker Revenue Forecasts For Seco/Warwick S.A. (WSE:SWG) Are Surging Higher

Seco/Warwick S.A. (WSE:SWG) shareholders will have a reason to smile today, with the covering analyst making substantial upgrades to next year's forecasts. The analyst has sharply increased their revenue numbers, with a view that Seco/Warwick will make substantially more sales than they'd previously expected.

After the upgrade, the solo analyst covering Seco/Warwick is now predicting revenues of zł753m in 2025. If met, this would reflect a satisfactory 5.3% improvement in sales compared to the last 12 months. Statutory earnings per share are supposed to crater 37% to zł2.05 in the same period. Prior to this update, the analyst had been forecasting revenues of zł655m and earnings per share (EPS) of zł2.01 in 2025. There's clearly been a surge in bullishness around the company's sales pipeline, even if there's no real change in earnings per share forecasts.

See our latest analysis for Seco/Warwick

Even though revenue forecasts increased, the consensus price target fell 5.2% to zł29.30, perhaps suggesting that the analyst has become more pessimistic about the lack of earnings growth.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Seco/Warwick's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Seco/Warwick's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 4.3% growth on an annualised basis. This is compared to a historical growth rate of 13% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 6.1% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Seco/Warwick.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analyst reconfirming that earnings per share are expected to continue performing in line with their prior expectations. Pleasantly, the analyst also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow slower than the wider market. The consensus price target fell measurably, with the analyst seemingly not reassured by recent business developments, leading to a lower estimate of Seco/Warwick's future valuation. Given that the analyst appears to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Seco/Warwick.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for Seco/Warwick going out as far as 2026, 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.