Ibersol, S.G.P.S., S.A. (ELI:IBS) Analysts Just Slashed Next Year's Revenue Estimates By 14%

The analysts covering Ibersol, S.G.P.S., S.A. (ELI:IBS) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for next year. There was a fairly draconian cut to their revenue estimates, perhaps an implicit admission that previous forecasts were much too optimistic.

Following the downgrade, the consensus from three analysts covering Ibersol S.G.P.S is for revenues of €417m in 2023, implying a definite 13% decline in sales compared to the last 12 months. Statutory earnings per share are anticipated to crater 73% to €0.43 in the same period. Before this latest update, the analysts had been forecasting revenues of €482m and earnings per share (EPS) of €0.45 in 2023. It looks like analyst sentiment has fallen somewhat in this update, with a measurable cut to revenue estimates and a small dip in earnings per share numbers as well.

See our latest analysis for Ibersol S.G.P.S

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. One more thing stood out to us about these estimates, and it's the idea that Ibersol S.G.P.S' decline is expected to accelerate, with revenues forecast to fall at an annualised rate of 11% to the end of 2023. This tops off a historical decline of 5.9% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 9.9% per year. So it's pretty clear that, while it does have declining revenues, the analysts also expect Ibersol S.G.P.S to suffer worse than the wider industry.

The Bottom Line

The most important thing to take away is that analysts cut their earnings per share estimates, expecting a clear decline in business conditions. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that Ibersol S.G.P.S' revenues are expected to grow slower 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 Ibersol S.G.P.S after today.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Ibersol S.G.P.S going out to 2025, 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 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.