Analysts Have Lowered Expectations For TFF Group (EPA:TFF) After Its Latest Results

TFF Group (EPA:TFF) shareholders are probably feeling a little disappointed, since its shares fell 2.3% to €15.44 in the week after its latest annual results. Revenues were €313m, with TFF Group reporting some 3.6% below analyst expectations. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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After the latest results, the consensus from TFF Group's five analysts is for revenues of €275.7m in 2027, which would reflect a considerable 12% decline in revenue compared to the last year of performance. Before this earnings report, the analysts had been forecasting revenues of €347.1m and earnings per share (EPS) of €1.12 in 2027. Overall, while there's been a pretty serious reduction to revenue estimates, the consensus now no longer provides an EPS estimate. This implies that after the latest results, the market believes revenue is more important.

See our latest analysis for TFF Group

Intriguingly,the analysts have cut their price target 11% to €18.16 showing a clear decline in sentiment around TFF Group's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values TFF Group at €22.00 per share, while the most bearish prices it at €15.50. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the TFF Group's past performance and to peers in the same industry. We would highlight that revenue is expected to reverse, with a forecast 12% annualised decline to the end of 2027. That is a notable change from historical growth of 6.3% 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 2.9% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - TFF Group is expected to lag the wider industry.

The Bottom Line

The clear low-light was that the analysts cut their forecast revenue estimates for TFF Group next year. Unfortunately, they also downgraded their revenue estimates, and our data indicates it is expected to perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of TFF Group's future valuation.

We have estimates for TFF Group from its five analysts out to 2029, and you can see them free on our platform here.

Even so, be aware that TFF Group is showing 4 warning signs in our investment analysis , and 1 of those shouldn't be ignored...

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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.