Energiekontor AG (ETR:EKT) Analysts Just Slashed This Year's Revenue Estimates By 18%

Market forces rained on the parade of Energiekontor AG (ETR:EKT) shareholders today, when the analysts downgraded their forecasts for this year. Revenue estimates were cut sharply as analysts signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well.

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After this downgrade, Energiekontor's two analysts are now forecasting revenues of €219m in 2025. This would be a substantial 73% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to shoot up 165% to €4.30. Previously, the analysts had been modelling revenues of €267m and earnings per share (EPS) of €4.48 in 2025. It looks like analyst sentiment has fallen somewhat in this update, with a measurable cut to revenue estimates and a small dip in earnings per share numbers as well.

See our latest analysis for Energiekontor

Analysts made no major changes to their price target of €129, suggesting the downgrades are not expected to have a long-term impact on Energiekontor's valuation.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's clear from the latest estimates that Energiekontor's rate of growth is expected to accelerate meaningfully, with the forecast 73% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 17% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 8.3% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Energiekontor to grow faster 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. While analysts did downgrade their revenue estimates, these forecasts still imply revenues will perform better than the wider market. Overall, given the drastic downgrade to this year's forecasts, we'd be feeling a little more wary of Energiekontor going forwards.

That said, the analysts might have good reason to be negative on Energiekontor, given its declining profit margins. For more information, you can click here to discover this and the 3 other risks 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 with high insider ownership.

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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.