Analysts Just Slashed Their Besqab AB (publ) (STO:BESQAB) EPS Numbers

Market forces rained on the parade of Besqab AB (publ) (STO:BESQAB) shareholders today, when the analysts downgraded their forecasts for this year. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting analysts have soured majorly on the business.

After the downgrade, the three analysts covering Besqab are now predicting revenues of kr2.4b in 2024. If met, this would reflect a huge 71% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to shoot up 43% to kr0.61. Previously, the analysts had been modelling revenues of kr2.6b and earnings per share (EPS) of kr0.70 in 2024. Indeed, we can see that the analysts are a lot more bearish about Besqab's prospects, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.

Check out our latest analysis for Besqab

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Besqab's past performance and to peers in the same industry. It's clear from the latest estimates that Besqab's rate of growth is expected to accelerate meaningfully, with the forecast 193% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 63% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 2.4% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Besqab is expected to grow much faster than its 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, although our data indicates revenues are expected to perform better than the wider market. Given the serious cut to this year's outlook, it's clear that analysts have turned more bearish on Besqab, and we wouldn't blame shareholders for feeling a little more cautious themselves.

After a downgrade like this, it's pretty clear that previous forecasts were too optimistic. What's more, we've spotted several possible issues with Besqab's business, like major dilution from new stock issuance in the past year. Learn more, and discover the 1 other flag we've identified, 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.