One TTS (Transport Trade Services) S.A. (BVB:TTS) Analyst Is Reducing Their Forecasts For This Year

The analyst covering TTS (Transport Trade Services) S.A. (BVB:TTS) 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) estimates were cut sharply as the analyst factored in the latest outlook for the business, concluding that they were too optimistic previously.

Following the latest downgrade, the single analyst covering TTS (Transport Trade Services) provided consensus estimates of RON999m revenue in 2024, which would reflect a definite 11% decline on its sales over the past 12 months. Statutory earnings per share are anticipated to plunge 47% to RON2.03 in the same period. Prior to this update, the analyst had been forecasting revenues of RON1.3b and earnings per share (EPS) of RON3.73 in 2024. Indeed, we can see that the analyst is a lot more bearish about TTS (Transport Trade Services)'s prospects, administering a sizeable cut to revenue estimates and slashing their EPS estimates to boot.

Check out our latest analysis for TTS (Transport Trade Services)

The consensus price target fell 7.7% to RON28.06, with the weaker earnings outlook clearly leading analyst valuation estimates.

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. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 11% by the end of 2024. This indicates a significant reduction from annual growth of 30% over the last three years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 1.9% annually for the foreseeable future. It's pretty clear that TTS (Transport Trade Services)'s revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The biggest issue in the new estimates is that the analyst has reduced their earnings per share estimates, suggesting business headwinds lay ahead for TTS (Transport Trade Services). Unfortunately the analyst also downgraded their revenue estimates, and industry data suggests that TTS (Transport Trade Services)'s revenues are expected to grow slower than the wider market. Given the scope of the downgrades, it would not be a surprise to see the market become more wary of the business.

In light of the downgrade, our automated discounted cash flow valuation tool suggests that TTS (Transport Trade Services) could now be moderately overvalued. Learn why, and examine the assumptions that underpin our valuation by visiting our free platform here to learn more about our valuation approach.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership.

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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.

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