What Does The Future Hold For Grupa Azoty S.A. (WSE:ATT)? These Analysts Have Been Cutting Their Estimates

Market forces rained on the parade of Grupa Azoty S.A. (WSE:ATT) shareholders today, when the analysts downgraded their forecasts for next year. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.

Following the downgrade, the consensus from three analysts covering Grupa Azoty is for revenues of zł22b in 2023, implying an uncomfortable 10% decline in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of zł25b in 2023. The consensus view seems to have become more pessimistic on Grupa Azoty, noting the measurable cut to revenue estimates in this update.

Check out our latest analysis for Grupa Azoty

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 sales are expected to reverse, with a forecast 8.4% annualised revenue decline to the end of 2023. That is a notable change from historical growth of 20% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 2.5% per year. It's pretty clear that Grupa Azoty's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The clear low-light was that analysts slashing their revenue forecasts for Grupa Azoty next year. They're also anticipating slower revenue growth than the wider market. Often, one downgrade can set off a daisy-chain of cuts, especially if an industry is in decline. So we wouldn't be surprised if the market became a lot more cautious on Grupa Azoty after today.

There might be good reason for analyst bearishness towards Grupa Azoty, like a weak balance sheet. Learn more, and discover the 3 other concerns we've identified, for free on our platform here.

We also provide an overview of the Grupa Azoty Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, 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.