News Flash: Analysts Just Made A Captivating Upgrade To Their Lubelski Wegiel Bogdanka S.A. (WSE:LWB) Forecasts

Shareholders in Lubelski Wegiel Bogdanka S.A. (WSE:LWB) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The revenue forecast for this year has experienced a facelift, with analysts now much more optimistic on its sales pipeline.

Following the latest upgrade, the current consensus, from the three analysts covering Lubelski Wegiel Bogdanka, is for revenues of zł3.5b in 2024, which would reflect a discernible 7.8% reduction in Lubelski Wegiel Bogdanka's sales over the past 12 months. After this upgrade, the company is anticipated to report a loss of zł24.21 in 2024, a sharp decline from a profit over the last year. Prior to this update, the analysts had been forecasting revenues of zł3.1b and earnings per share (EPS) of zł7.20 in 2024. Despite increasing their revenue forecasts, the consensus now presumes the business will report a loss instead of a profit. It seems the incremental revenue is not without its costs.

See our latest analysis for Lubelski Wegiel Bogdanka

It will come as no surprise that expanding losses caused the consensus price target to fall 10% to zł21.06 with the analysts implicitly ranking ongoing losses as a greater concern than growing revenues.

Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 10% by the end of 2024. This indicates a significant reduction from annual growth of 14% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue decline 1.2% annually for the foreseeable future. So it's pretty clear that Lubelski Wegiel Bogdanka's revenues are expected to shrink faster than the wider industry.

The Bottom Line

The biggest low-light for us was that the forecasts for Lubelski Wegiel Bogdanka dropped from profits to a loss this year. They also upgraded their revenue estimates, with sales apparently performing well even though revenue growth expected to decline against the wider market this year. The consensus price target fell measurably, with analysts seemingly not reassured by recent business developments, leading to a lower estimate of Lubelski Wegiel Bogdanka's future valuation. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Lubelski Wegiel Bogdanka.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At Simply Wall St, we have a full range of analyst estimates for Lubelski Wegiel Bogdanka going out to 2026, and you can see them free on our platform here..

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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.