What Does The Future Hold For Anglo Pacific Group plc (LON:APF)? These Analysts Have Been Cutting Their Estimates
The analysts covering Anglo Pacific Group plc (LON:APF) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. Revenue estimates were cut sharply as the analysts signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well.
After the downgrade, the consensus from Anglo Pacific Group's twin analysts is for revenues of US$75m in 2022, which would reflect a definite 12% decline in sales compared to the last year of performance. Before the latest update, the analysts were foreseeing US$91m of revenue in 2022. The consensus view seems to have become more pessimistic on Anglo Pacific Group, noting the substantial drop in revenue estimates in this update.
See our latest analysis for Anglo Pacific Group
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Anglo Pacific Group's past performance and to peers in the same industry. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 12% by the end of 2022. This indicates a significant reduction from annual growth of 8.0% over the last five years. Yet aggregate analyst estimates for other companies in the industry suggest that industry revenues are forecast to decline 4.2% per year. The forecasts do look bearish for Anglo Pacific Group, since they're expecting it to shrink faster than the industry.
The Bottom Line
The most important thing to take away is that analysts cut their revenue estimates for this year. Analysts also expect revenues to shrink faster than the wider market. Given the stark change in sentiment, we'd understand if investors became more cautious on Anglo Pacific Group after today.
So things certainly aren't looking great, and you should also know that we've spotted some potential warning signs with Anglo Pacific Group, including concerns around earnings quality. For more information, you can click here to discover this and the 3 other concerns we've identified.
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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.
