Downgrade: What You Need To Know About The Latest ES Energy Save Holding AB (publ) (STO:ESGR B) Forecasts

Today is shaping up negative for ES Energy Save Holding AB (publ) (STO:ESGR B) shareholders, with the covering analyst delivering a substantial negative revision to this year's forecasts. There was a fairly draconian cut to their revenue estimates, perhaps an implicit admission that previous forecasts were much too optimistic.

After this downgrade, ES Energy Save Holding's single analyst is now forecasting revenues of kr300m in 2025. This would be a substantial 65% improvement in sales compared to the last 12 months. The loss per share is anticipated to greatly reduce in the near future, narrowing 81% to kr0.80. Yet before this consensus update, the analyst had been forecasting revenues of kr350m and losses of kr0.72 per share in 2025. 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 ES Energy Save Holding

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's clear from the latest estimates that ES Energy Save Holding's rate of growth is expected to accelerate meaningfully, with the forecast 65% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 39% 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 3.0% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that ES Energy Save Holding is expected to grow much faster than its 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, although our data indicates revenues are expected to perform better than the wider market. Overall, given the drastic downgrade to this year's forecasts, we'd be feeling a little more wary of ES Energy Save Holding going forwards.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for ES Energy Save Holding going out as far as 2027, and you can see them 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.

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