One Analyst Just Shaved Their ES Energy Save Holding AB (publ) (STO:ESGR B) Forecasts Dramatically

One thing we could say about the covering analyst on ES Energy Save Holding AB (publ) (STO:ESGR 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) estimates were cut sharply as the analyst factored in the latest outlook for the business, concluding that they were too optimistic previously. Shares are up 6.4% to kr17.50 in the past week. Investors could be forgiven for changing their mind on the business following the downgrade; but it's not clear if the revised forecasts will lead to selling activity.

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After the downgrade, the solitary analyst covering ES Energy Save Holding is now predicting revenues of kr211m in 2025. If met, this would reflect a notable 19% improvement in sales compared to the last 12 months. The loss per share is anticipated to greatly reduce in the near future, narrowing 42% to kr2.72. Yet before this consensus update, the analyst had been forecasting revenues of kr238m and losses of kr2.40 per share in 2025. So there's been quite a change-up of views after the recent consensus updates, with the analyst making a serious cut to their revenue forecasts while also expecting losses per share to increase.

View our latest analysis for ES Energy Save Holding

The consensus price target fell 21% to kr40.00, with the analyst clearly concerned about the company following the weaker revenue and earnings outlook.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analyst is definitely expecting ES Energy Save Holding's growth to accelerate, with the forecast 41% annualised growth to the end of 2025 ranking favourably alongside historical growth of 27% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 2.6% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analyst also expect ES Energy Save Holding to grow faster than 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, although our data indicates revenues are expected to perform better than the wider market. With a serious cut to this year's expectations and a falling price target, we wouldn't be surprised if investors were becoming wary of ES Energy Save Holding.

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.

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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.