Things Look Grim For Facephi Biometria, S.A. (BME:FACE) After Today's Downgrade
Market forces rained on the parade of Facephi Biometria, S.A. (BME:FACE) shareholders today, when the analysts downgraded their forecasts for this year. Revenue and earnings per share (EPS) forecasts were both revised downwards, with analysts seeing grey clouds on the horizon.
Following the latest downgrade, the current consensus, from the two analysts covering Facephi Biometria, is for revenues of €38m in 2026, which would reflect a noticeable 7.0% reduction in Facephi Biometria's sales over the past 12 months. Per-share earnings are expected to bounce 606% to €0.085. Previously, the analysts had been modelling revenues of €45m and earnings per share (EPS) of €0.17 in 2026. It looks like analyst sentiment has declined substantially, with a measurable cut to revenue estimates and a pretty serious decline to earnings per share numbers as well.
See our latest analysis for Facephi Biometria
It'll come as no surprise then, to learn that the analysts have cut their price target 32% to €2.50.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Facephi Biometria's past performance and to peers in the same industry. We would highlight that sales are expected to reverse, with a forecast 7.0% annualised revenue decline to the end of 2026. That is a notable change from historical growth of 24% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 10% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Facephi Biometria is expected to lag 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. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. After such a stark change in sentiment from analysts, we'd understand if readers now felt a bit wary of Facephi Biometria.
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.