Need To Know: Analysts Just Made A Substantial Cut To Their Eolus Vind AB (publ) (STO:EOLU B) Estimates

Today is shaping up negative for Eolus Vind AB (publ) (STO:EOLU B) shareholders, with the analysts delivering a substantial negative revision to this year's forecasts. 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 most recent consensus for Eolus Vind from its four analysts is for revenues of kr824m in 2024 which, if met, would be a sizeable 117% increase on its sales over the past 12 months. Per-share earnings are expected to soar 54% to kr5.20. Prior to this update, the analysts had been forecasting revenues of kr942m and earnings per share (EPS) of kr6.21 in 2024. Indeed, we can see that the analysts are a lot more bearish about Eolus Vind's prospects, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.

View our latest analysis for Eolus Vind

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. It's clear from the latest estimates that Eolus Vind's rate of growth is expected to accelerate meaningfully, with the forecast 117% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 0.4% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.2% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Eolus Vind to grow faster 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 Eolus Vind. Unfortunately, analysts also downgraded their revenue estimates, although our data indicates revenues are expected to perform better than the wider market. We wouldn't be surprised to find shareholders feeling a bit shell-shocked, after these downgrades. It looks like analysts have become a lot more bearish on Eolus Vind, and their negativity could be grounds for caution.

As you can see, the analysts clearly aren't bullish, and there might be good reason for that. We've identified some potential issues with Eolus Vind's financials, such as concerns around earnings quality. For more information, you can click here to discover this and the 1 other warning sign we've identified.

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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.