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HIAG Immobilien Holding AG (VTX:HIAG) Analysts Just Slashed This Year's Estimates

Market forces rained on the parade of HIAG Immobilien Holding AG (VTX:HIAG) shareholders today, when the analysts downgraded their forecasts for this year. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting the analysts have soured majorly on the business.

After the downgrade, the consensus from HIAG Immobilien Holding's dual analysts is for revenues of CHF106m in 2023, which would reflect a chunky 15% decline in sales compared to the last year of performance. Statutory earnings per share are anticipated to crater 50% to CHF3.22 in the same period. Prior to this update, the analysts had been forecasting revenues of CHF122m and earnings per share (EPS) of CHF3.64 in 2023. It looks like analyst sentiment has declined substantially, with a measurable cut to revenue estimates and a considerable drop in earnings per share numbers as well.

Check out our latest analysis for HIAG Immobilien Holding

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earnings-and-revenue-growth

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 28% annualised revenue decline to the end of 2023. That is a notable change from historical growth of 14% over the last five years. Yet aggregate analyst estimates for other companies in the industry suggest that industry revenues are forecast to decline 7.3% per year. The forecasts do look bearish for HIAG Immobilien Holding, since they're expecting it to shrink faster than the industry.

The Bottom Line

The most important thing to take away is that analysts 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 a cut like that, investors could be forgiven for thinking analysts are a lot more bearish on HIAG Immobilien Holding, and a few readers might choose to steer clear of the stock.

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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 HIAG Immobilien Holding's business, like its declining profit margins. For more information, you can click here to discover this and the 3 other flags we've identified.

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 that insiders are buying.

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.