The Genovis AB (publ.) (STO:GENO) Analysts Have Been Trimming Their Sales Forecasts

One thing we could say about the analysts on Genovis AB (publ.) (STO:GENO) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Revenue estimates were cut sharply as analysts signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well.

After the downgrade, the three analysts covering Genovis AB (publ.) are now predicting revenues of kr132m in 2024. If met, this would reflect a modest 2.9% improvement in sales compared to the last 12 months. Per-share earnings are expected to ascend 15% to kr0.54. Prior to this update, the analysts had been forecasting revenues of kr152m and earnings per share (EPS) of kr0.72 in 2024. It looks like analyst sentiment has declined substantially, with a substantial drop in revenue estimates and a large cut to earnings per share numbers as well.

View our latest analysis for Genovis AB (publ.)

Despite the cuts to forecast earnings, there was no real change to the kr49.50 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value.

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. We would highlight that Genovis AB (publ.)'s revenue growth is expected to slow, with the forecast 5.8% annualised growth rate until the end of 2024 being well below the historical 26% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 9.4% per year. Factoring in the forecast slowdown in growth, it seems obvious that Genovis AB (publ.) is also expected to grow slower than other industry participants.

The Bottom Line

The biggest issue in the new estimates is that analysts have reduced their earnings per share estimates, suggesting business headwinds lay ahead for Genovis AB (publ.). Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that Genovis AB (publ.)'s revenues are expected to grow slower than the wider market. Overall, given the drastic downgrade to this year's forecasts, we'd be feeling a little more wary of Genovis AB (publ.) going forwards.

Still, the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Genovis AB (publ.) going out to 2026, 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.