Analysts Have Just Cut Their SMT Scharf AG (ETR:S188) Revenue Estimates By 19%

One thing we could say about the analysts on SMT Scharf AG (ETR:S188) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.

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Following the downgrade, the consensus from two analysts covering SMT Scharf is for revenues of €79m in 2026, implying a definite 8.5% decline in sales compared to the last 12 months. Losses are predicted to fall substantially, shrinking 84% to €0.24 per share. Yet prior to the latest estimates, the analysts had been forecasting revenues of €97m and losses of €0.24 per share in 2026. So there's been quite a change-up of views after the recent consensus updates, with the analysts making a serious cut to their revenue forecasts while also making no real change to the loss per share numbers.

View our latest analysis for SMT Scharf

There was no real change to the consensus price target of €8.25, suggesting that the revisions to revenue estimates are not expected to have a long-term impact on SMT Scharf's valuation.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that sales are expected to reverse, with a forecast 8.5% annualised revenue decline to the end of 2026. That is a notable change from historical growth of 4.8% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 6.5% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - SMT Scharf is expected to lag the wider industry.

The Bottom Line

Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that SMT Scharf's revenues are expected to grow slower than the wider market. Often, one downgrade can set off a daisy-chain of cuts, especially if an industry is in decline. So we wouldn't be surprised if the market became a lot more cautious on SMT Scharf after today.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have analyst estimates for SMT Scharf going out as far as 2028, and you can see them free on our platform here.

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