Yahoo Finance Revenue Downgrade: Here's What Analysts Forecast For Sonae Capital, SGPS, SA (ELI:SONC)
One thing we could say about the analysts on Sonae Capital, SGPS, SA (ELI:SONC) - 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.
After the downgrade, the consensus from Sonae Capital SGPS' two analysts is for revenues of €261m in 2020, which would reflect an uncomfortable 9.2% decline in sales compared to the last year of performance. Before this latest update, the analysts had been forecasting revenues of €291m and earnings per share (EPS) of €0.02 in 2020. Indeed, we can see that the analysts are a lot more bearish about Sonae Capital SGPS' prospects, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.
Check out our latest analysis for Sonae Capital SGPS
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Sonae Capital SGPS' past performance and to peers in the same industry. These estimates imply that sales are expected to slow, with a forecast revenue decline of 9.2%, a significant reduction from annual growth of 8.6% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 3.9% next year. It's pretty clear that Sonae Capital SGPS' revenues are expected to perform substantially worse than the wider 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 analysts also downgraded their revenue estimates, and industry data suggests that Sonae Capital SGPS' revenues are expected to grow slower than the wider market. Given the stark change in sentiment, we'd understand if investors became more cautious on Sonae Capital SGPS after today.
That said, the analysts might have good reason to be negative on Sonae Capital SGPS, given the risk of cutting its dividend. Learn more, and discover the 2 other risks 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 that insiders are buying.
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