News Flash: 4 Analysts Think LPKF Laser & Electronics SE (ETR:LPK) Earnings Are Under Threat
One thing we could say about the analysts on LPKF Laser & Electronics SE (ETR:LPK) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting analysts have soured majorly on the business.
Following the latest downgrade, LPKF Laser & Electronics' four analysts currently expect revenues in 2024 to be €134m, approximately in line with the last 12 months. Statutory earnings per share are presumed to shoot up 137% to €0.17. Prior to this update, the analysts had been forecasting revenues of €155m and earnings per share (EPS) of €0.40 in 2024. It looks like analyst sentiment has declined substantially, with a measurable cut to revenue estimates and a large cut to earnings per share numbers as well.
View our latest analysis for LPKF Laser & Electronics
The consensus price target fell 8.8% to €13.00, with the weaker earnings outlook clearly leading analyst valuation estimates.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's also worth noting that the years of declining sales look to have come to an end, with the forecast for flat revenues to the end of 2024. Historically, LPKF Laser & Electronics' sales have shrunk approximately 2.0% annually over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 10% annually. So it's pretty clear that, although revenues are improving, LPKF Laser & Electronics is still expected to grow slower than 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 LPKF Laser & Electronics. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that LPKF Laser & Electronics' revenues are expected to grow slower than the wider market. Given the scope of the downgrades, it would not be a surprise to see the market become more wary of the business.
In light of the downgrade, our automated discounted cash flow valuation tool suggests that LPKF Laser & Electronics could now be moderately overvalued. Find out why, and see how we estimate the valuation 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 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.
