One Naftna Industrija Srbije a.d. (BELEX:NIIS) Analyst Is Reducing Their Forecasts For This Year

Today is shaping up negative for Naftna Industrija Srbije a.d. (BELEX:NIIS) shareholders, with the covering analyst delivering a substantial negative revision to this year's forecasts. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting the analyst has soured majorly on the business.

Following the latest downgrade, the current consensus, from the sole analyst covering Naftna Industrija Srbije a.d, is for revenues of дин383b in 2024, which would reflect an uncomfortable 9.7% reduction in Naftna Industrija Srbije a.d's sales over the past 12 months. Statutory earnings per share are supposed to nosedive 64% to дин80.61 in the same period. Previously, the analyst had been modelling revenues of дин569b and earnings per share (EPS) of дин260 in 2024. It looks like analyst sentiment has declined substantially, with a pretty serious reduction to revenue estimates and a large cut to earnings per share numbers as well.

Check out our latest analysis for Naftna Industrija Srbije a.d

It'll come as no surprise then, to learn that the analyst has cut their price target 16% to дин940.

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 18% annualised revenue decline to the end of 2024. That is a notable change from historical growth of 16% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue decline 1.2% annually for the foreseeable future. The forecasts do look bearish for Naftna Industrija Srbije a.d, since they're expecting it to shrink faster than the industry.

The Bottom Line

The most important thing to take away is that the analyst cut their earnings per share estimates, expecting a clear decline in business conditions. Unfortunately they also downgraded their revenue estimates, and our aggregation of analyst estimates suggests that Naftna Industrija Srbije a.d revenue is expected to perform worse than the wider market. After such a stark change in sentiment from the analyst, we'd understand if readers now felt a bit wary of Naftna Industrija Srbije a.d.

So things certainly aren't looking great, and you should also know that we've spotted some potential warning signs with Naftna Industrija Srbije a.d, including its declining profit margins. For more information, you can click here to discover this and the 3 other concerns we've identified.

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.