One Les Constructeurs du Bois S.A. (EPA:MLLCB) Analyst Just Cut Their EPS Forecasts

Market forces rained on the parade of Les Constructeurs du Bois S.A. (EPA:MLLCB) shareholders today, when the covering analyst downgraded their forecasts for this year. 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.

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Following the latest downgrade, the current consensus, from the solitary analyst covering Les Constructeurs du Bois, is for revenues of €20m in 2026, which would reflect a noticeable 4.3% reduction in Les Constructeurs du Bois' sales over the past 12 months. Per-share earnings are expected to swell 13% to €0.08. Before this latest update, the analyst had been forecasting revenues of €28m and earnings per share (EPS) of €0.15 in 2026. Indeed, we can see that the analyst is a lot more bearish about Les Constructeurs du Bois' prospects, administering a pretty serious reduction to revenue estimates and slashing their EPS estimates to boot.

See our latest analysis for Les Constructeurs du Bois

The consensus price target fell 14% to €2.33, with the weaker earnings outlook clearly leading analyst valuation estimates.

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. We would highlight that sales are expected to reverse, with a forecast 4.3% annualised revenue decline to the end of 2026. That is a notable change from historical growth of 24% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue decline 0.2% annually for the foreseeable future. The forecasts do look bearish for Les Constructeurs du Bois, since they're expecting it to shrink faster than the industry.

The Bottom Line

The most important thing to take away is that the analyst cut their earnings per share estimates, expecting a clear decline in business conditions. Unfortunately they also cut their revenue estimates for this year, and they expect sales to lag the wider market. That said, earnings per share are more important for creating value for shareholders. After such a stark change in sentiment from the analyst, we'd understand if readers now felt a bit wary of Les Constructeurs du Bois.

As you can see, the analyst clearly isn't bullish, and there might be good reason for that. We've identified some potential issues with Les Constructeurs du Bois' financials, such as its declining profit margins. Learn more, and discover the 3 other concerns we've identified, for free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership.

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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.