Some TTS (Transport Trade Services) S.A. (BVB:TTS) Analysts Just Made A Major Cut To Next Year's Estimates

One thing we could say about the analysts on TTS (Transport Trade Services) S.A. (BVB:TTS) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Both revenue and earnings per share (EPS) estimates were cut sharply as the analysts factored in the latest outlook for the business, concluding that they were too optimistic previously.

Following the downgrade, the consensus from twin analysts covering TTS (Transport Trade Services) is for revenues of RON736m in 2024, implying a not inconsiderable 17% decline in sales compared to the last 12 months. Statutory earnings per share are presumed to grow 12% to RON0.48. Before this latest update, the analysts had been forecasting revenues of RON856m and earnings per share (EPS) of RON1.43 in 2024. Indeed, we can see that the analysts are a lot more bearish about TTS (Transport Trade Services)'s prospects, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.

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

The consensus price target fell 38% to RON4.37, with the weaker earnings outlook clearly leading analyst valuation estimates.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that sales are expected to reverse, with a forecast 17% annualised revenue decline to the end of 2024. That is a notable change from historical growth of 20% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 0.7% 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 analysts have reduced their earnings per share estimates, suggesting business headwinds lay ahead for TTS (Transport Trade Services). Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. After such a stark change in sentiment from analysts, we'd understand if readers now felt a bit wary of TTS (Transport Trade Services).

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2026, which can be seen for 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 backed by insiders.

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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.