The latest analyst coverage could presage a bad day for EVS Broadcast Equipment S.A. (EBR:EVS), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.

After the downgrade, the consensus from EVS Broadcast Equipment's dual analysts is for revenues of €80m in 2020, which would reflect a disturbing 23% decline in sales compared to the last year of performance. Prior to the latest estimates, the analysts were forecasting revenues of €95m in 2020. It looks like forecasts have become a fair bit less optimistic on EVS Broadcast Equipment, given the substantial drop in revenue estimates.

See our latest analysis for EVS Broadcast Equipment

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the EVS Broadcast Equipment's past performance and to peers in the same industry. One more thing stood out to us about these estimates, and it's the idea that EVS Broadcast Equipment'sdecline is expected to accelerate, with revenues forecast to fall 23% next year, topping off a historical decline of 2.8% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 3.1% per year. So it's pretty clear that, while it does have declining revenues, the analysts also expect EVS Broadcast Equipment to suffer worse than the wider industry.

The Bottom Line

The most important thing to take away is that analysts cut their revenue estimates for this year. They also expect company revenue to perform worse than the wider market. Often, one downgrade can set off a daisy-chain of cuts, especially if an industry is in decline. So we wouldn't be surprised if the market became a lot more cautious on EVS Broadcast Equipment after today.

Thirsting for more data? At least one of EVS Broadcast Equipment's dual analysts has provided estimates out to 2021, which can be seen 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 that insiders are buying.

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