The Gek Terna S.A. (ATH:GEKTERNA) Analysts Have Been Trimming Their Sales Forecasts
One thing we could say about the analysts on Gek Terna S.A. (ATH:GEKTERNA) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. There was a fairly draconian cut to their revenue estimates, perhaps an implicit admission that previous forecasts were much too optimistic. Shares are up 7.1% to €42.04 in the past week. Investors could be forgiven for changing their mind on the business following the downgrade; but it's not clear if the revised forecasts will lead to selling activity.
Following the downgrade, the consensus from seven analysts covering Gek Terna is for revenues of €2.6b in 2026, implying a substantial 36% decline in sales compared to the last 12 months. Per-share earnings are expected to bounce 21% to €1.59. Prior to this update, the analysts had been forecasting revenues of €2.9b and earnings per share (EPS) of €1.62 in 2026. So there's been a clear change in analyst sentiment in the recent update, with the analysts making a substantial drop in revenues and reconfirming their earnings per share estimates.
See our latest analysis for Gek Terna
The consensus has reconfirmed its price target of €51.16, showing that the analysts don't expect weaker sales expectationsthis year to have a material impact on Gek Terna's market value.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Gek Terna'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 58% by the end of 2026. This indicates a significant reduction from annual growth of 17% 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 5.2% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Gek Terna is expected to lag the wider industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with analysts reconfirming that earnings per share are expected to continue performing in line with their prior expectations. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that Gek Terna's revenues are expected to grow slower than the wider market. Overall, given the drastic downgrade to this year's forecasts, we'd be feeling a little more wary of Gek Terna going forwards.
So things certainly aren't looking great, and you should also know that we've spotted some potential warning signs with Gek Terna, including dilutive stock issuance over the past year. Learn more, and discover the 2 other concerns we've identified, for free on our platform here.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.