The latest analyst coverage could presage a bad day for VEEM Ltd (ASX:VEE), 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) forecasts went under the knife, suggesting analysts have soured majorly on the business.
After the downgrade, the consensus from VEEM's twin analysts is for revenues of AU$61m in 2026, which would reflect an uncomfortable 11% decline in sales compared to the last year of performance. After this downgrade, the company is anticipated to report a loss of AU$0.0014 in 2026, a sharp decline from a profit over the last year. Prior to this update, the analysts had been forecasting revenues of AU$75m and earnings per share (EPS) of AU$0.032 in 2026. There looks to have been a major change in sentiment regarding VEEM's prospects, with a measurable cut to revenues and the analysts now forecasting a loss instead of a profit.
See our latest analysis for VEEM
Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that sales are expected to reverse, with a forecast 11% annualised revenue decline to the end of 2026. That is a notable change from historical growth of 9.4% 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 54% per year. It's pretty clear that VEEM's revenues are expected to perform substantially worse than the wider industry.
The most important thing to take away is that analysts are expecting VEEM to become unprofitable this year. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. After a cut like that, investors could be forgiven for thinking analysts are a lot more bearish on VEEM, and a few readers might choose to steer clear of the stock.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2028, which can be seen for 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 backed by insiders.
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.