One Enad Global 7 AB (publ) (STO:EG7) Analyst Has Been Cutting Their Forecasts

Today is shaping up negative for Enad Global 7 AB (publ) (STO:EG7) shareholders, with the covering analyst delivering a substantial negative revision to next year's forecasts. Revenue and earnings per share (EPS) forecasts were both revised downwards, with the analyst seeing grey clouds on the horizon.

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After the downgrade, the consensus from Enad Global 7's single analyst is for revenues of kr1.9b in 2026, which would reflect a measurable 7.2% decline in sales compared to the last year of performance. Losses are predicted to fall substantially, shrinking 97% to kr0.06 per share. Before this latest update, the analyst had been forecasting revenues of kr2.2b and earnings per share (EPS) of kr0.26 in 2026. So we can see that the consensus has become notably more bearish on Enad Global 7's outlook with these numbers, making a substantial drop in next year's revenue estimates. Furthermore, they expect the business to be loss-making next year, compared to their previous forecasts of a profit.

View our latest analysis for Enad Global 7

The consensus price target fell 6.7% to kr28.00, implicitly signalling that lower earnings per share are a leading indicator for Enad Global 7's valuation.

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. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 5.8% by the end of 2026. This indicates a significant reduction from annual growth of 18% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 13% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Enad Global 7 is expected to lag the wider industry.

The Bottom Line

The most important thing to take away is that the analyst is expecting Enad Global 7 to become unprofitable next year. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. Given the scope of the downgrades, it would not be a surprise to see the market become more wary of the business.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2027, which can be seen 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.