Analysts Just Shaved Their Arctic Paper S.A. (WSE:ATC) Forecasts Dramatically

The analysts covering Arctic Paper S.A. (WSE:ATC) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting analysts have soured majorly on the business.

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Following this downgrade, Arctic Paper's two analysts are forecasting 2025 revenues to be zł3.3b, approximately in line with the last 12 months. Per-share earnings are expected to rise 8.8% to zł0.92. Previously, the analysts had been modelling revenues of zł3.7b and earnings per share (EPS) of zł1.43 in 2025. Indeed, we can see that the analysts are a lot more bearish about Arctic Paper's prospects, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.

See our latest analysis for Arctic Paper

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that Arctic Paper's revenue growth is expected to slow, with the forecast 0.5% annualised growth rate until the end of 2025 being well below the historical 4.8% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 3.6% 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 Arctic Paper.

The Bottom Line

The biggest issue in the new estimates is that analysts have reduced their earnings per share estimates, suggesting business headwinds lay ahead for Arctic Paper. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. Given the serious cut to this year's outlook, it's clear that analysts have turned more bearish on Arctic Paper, and we wouldn't blame shareholders for feeling a little more cautious themselves.

As you can see, the analysts clearly aren't bullish, and there might be good reason for that. We've identified some potential issues with Arctic Paper's financials, such as concerns around earnings quality. For more information, you can click here to discover this and the 2 other flags 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.