Yahoo Finance Shorn Like A Sheep: Analysts Just Shaved Their Haulotte Group SA (EPA:PIG) Forecasts Dramatically
Market forces rained on the parade of Haulotte Group SA (EPA:PIG) shareholders today, when the analysts downgraded their forecasts for this year. Revenue and earnings per share (EPS) forecasts were both revised downwards, with the analysts seeing grey clouds on the horizon.
After the downgrade, the consensus from Haulotte Group's six analysts is for revenues of €436m in 2020, which would reflect a sizeable 28% decline in sales compared to the last year of performance. Statutory earnings per share are anticipated to nosedive 64% to €0.28 in the same period. Prior to this update, the analysts had been forecasting revenues of €510m and earnings per share (EPS) of €0.41 in 2020. 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 Haulotte Group
The consensus price target fell 16% to €4.03, with the weaker earnings outlook clearly leading analyst valuation estimates. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Haulotte Group, with the most bullish analyst valuing it at €5.50 and the most bearish at €3.00 per share. This is a fairly broad spread of estimates, suggesting that the analysts are forecasting a wide range of possible outcomes for the business.
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 the forecast 28% revenue decline a notable change from historical growth of 8.2% 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 4.3% next year. It's pretty clear that Haulotte Group's 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 Haulotte Group's revenues are expected to grow slower than the wider market. After such a stark change in sentiment from analysts, we'd understand if readers now felt a bit wary of Haulotte Group.
Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Haulotte Group analysts - going out to 2022, and you can see them 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 that insiders are buying.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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