One Concordia Maritime AB (publ) (STO:CCOR B) Analyst Just Cut Their EPS Forecasts

One thing we could say about the covering analyst on Concordia Maritime AB (publ) (STO:CCOR B) - 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) forecasts went under the knife, suggesting the analyst has soured majorly on the business.

Following the downgrade, the consensus from solo analyst covering Concordia Maritime is for revenues of kr761m in 2021, implying a substantial 35% decline in sales compared to the last 12 months. Losses are supposed to balloon 5,872% to kr10.14 per share. However, before this estimates update, the consensus had been expecting revenues of kr907m and kr8.75 per share in losses. Ergo, there's been a clear change in sentiment, with the analyst administering a notable cut to this year's revenue estimates, while at the same time increasing their loss per share forecasts.

View our latest analysis for Concordia Maritime

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Concordia Maritime's past performance and to peers in the same industry. These estimates imply that sales are expected to slow, with a forecast revenue decline of 35%, a significant reduction from annual growth of 4.3% 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 9.0% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Concordia Maritime is expected to lag the wider industry.

The Bottom Line

The most important thing to take away is that the analyst increased their loss per share estimates for this year. Unfortunately the analyst also downgraded their revenue estimates, and industry data suggests that Concordia Maritime's revenues are expected to grow slower than the wider market. Given the serious cut to this year's outlook, it's clear that the analyst has turned more bearish on Concordia Maritime, and we wouldn't blame shareholders for feeling a little more cautious themselves.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At least one analyst has provided forecasts out to 2022, which can be seen for free on our platform here.

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 that insiders are buying.

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