Yahoo Finance The EQTEC plc (LON:EQT) Analysts Have Been Trimming Their Sales Forecasts
The latest analyst coverage could presage a bad day for EQTEC plc (LON:EQT), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.
Following the downgrade, the current consensus from EQTEC's four analysts is for revenues of €21m in 2023 which - if met - would reflect a major 79% increase on its sales over the past 12 months. Before the latest update, the analysts were foreseeing €26m of revenue in 2023. The consensus view seems to have become more pessimistic on EQTEC, noting the substantial drop in revenue estimates in this update.
View our latest analysis for EQTEC
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. The analysts are definitely expecting EQTEC's growth to accelerate, with the forecast 79% annualised growth to the end of 2023 ranking favourably alongside historical growth of 52% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 5.5% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that EQTEC is expected to grow much faster than its industry.
The Bottom Line
The clear low-light was that analysts slashing their revenue forecasts for EQTEC this year. The analysts also expect revenues to grow faster than the wider market. Overall, given the drastic downgrade to this year's forecasts, we'd be feeling a little more wary of EQTEC going forwards.
After a downgrade like this, it's pretty clear that previous forecasts were too optimistic. What's more, we've spotted several possible issues with EQTEC's business, like dilutive stock issuance over the past year. For more information, you can click here to discover this and the 2 other risks we've identified.
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 that insiders are buying.
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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.
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