Yahoo Finance Time To Worry? Analysts Are Downgrading Their Petards Group plc (LON:PEG) Outlook
The latest analyst coverage could presage a bad day for Petards Group plc (LON:PEG), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Both revenue and earnings per share (EPS) estimates were cut sharply as analysts factored in the latest outlook for the business, concluding that they were too optimistic previously.
Following the latest downgrade, Petards Group's dual analysts currently expect revenues in 2022 to be UK£11m, approximately in line with the last 12 months. Statutory earnings per share are anticipated to plummet 70% to UK£0.0028 in the same period. Prior to this update, the analysts had been forecasting revenues of UK£14m and earnings per share (EPS) of UK£0.01 in 2022. Indeed, we can see that the analysts are a lot more bearish about Petards Group's prospects, administering a measurable cut to revenue estimates and slashing their EPS estimates to boot.
Check out our latest analysis for Petards Group
Of course, another way to look at these forecasts is to place them into context against the industry itself. One thing that stands out from these estimates is that shrinking revenues are expected to moderate over the period ending 2022 compared to the historical decline of 7.3% 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 see their revenue grow 9.5% per year. So while a broad number of companies are forecast to grow, unfortunately Petards Group is expected to see its sales affected worse than other companies in the industry.
The Bottom Line
The biggest issue in the new estimates is that analysts have reduced their earnings per share estimates, suggesting business headwinds lay ahead for Petards Group. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that Petards Group's revenues are expected to grow slower than the wider market. After a cut like that, investors could be forgiven for thinking analysts are a lot more bearish on Petards Group, and a few readers might choose to steer clear of the stock.
Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have analyst estimates for Petards Group going out as far as 2023, and you can see them 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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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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