One Esautomotion S.p.A. (BIT:ESAU) Analyst Is Reducing Their Forecasts For This Year
One thing we could say about the covering analyst on Esautomotion S.p.A. (BIT:ESAU) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Revenue and earnings per share (EPS) forecasts were both revised downwards, with the analyst seeing grey clouds on the horizon.
Following the latest downgrade, the current consensus, from the solo analyst covering Esautomotion, is for revenues of €27m in 2026, which would reflect a small 4.1% reduction in Esautomotion's sales over the past 12 months. Statutory earnings per share are supposed to crater 23% to €0.16 in the same period. Previously, the analyst had been modelling revenues of €33m and earnings per share (EPS) of €0.23 in 2026. It looks like analyst sentiment has declined substantially, with a substantial drop in revenue estimates and a pretty serious decline to earnings per share numbers as well.
See our latest analysis for Esautomotion
It'll come as no surprise then, to learn that the analyst has cut their price target 9.3% to €3.90.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Esautomotion's past performance and to peers in the same industry. Over the past five years, revenues have declined around 0.3% annually. Worse, forecasts are essentially predicting the decline to accelerate, with the estimate for an annualised 4.1% decline in revenue until the end of 2026. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 7.3% per year. So while a broad number of companies are forecast to grow, unfortunately Esautomotion is expected to see its sales affected worse than other companies in 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. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. After such a stark change in sentiment from the analyst, we'd understand if readers now felt a bit wary of Esautomotion.
Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At least one analyst has provided forecasts out to 2028, 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.