Need To Know: This Analyst Just Made A Substantial Cut To Their Rush Factory Oyj (HEL:RUSH) Estimates
The analyst covering Rush Factory Oyj (HEL:RUSH) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. Revenue and earnings per share (EPS) forecasts were both revised downwards, with the analyst seeing grey clouds on the horizon. The stock price has risen 5.0% to €0.83 over the past week. It will be interesting to see if this downgrade motivates investors to start selling their holdings.
After the downgrade, the consensus from Rush Factory Oyj's one analyst is for revenues of €2.8m in 2020, which would reflect a sizeable 31% decline in sales compared to the last year of performance. Statutory earnings per share are anticipated to crater 83% to €0.02 in the same period. Before this latest update, the analyst had been forecasting revenues of €3.9m and earnings per share (EPS) of €0.11 in 2020. Indeed, we can see that the analyst is a lot more bearish about Rush Factory Oyj's prospects, administering a pretty serious reduction to revenue estimates and slashing their EPS estimates to boot.
Check out our latest analysis for Rush Factory Oyj
The consensus price target fell 33% to €0.80, with the weaker earnings outlook clearly leading analyst valuation estimates.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. One more thing stood out to us about these estimates, and it's the idea that Rush Factory Oyj'sdecline is expected to accelerate, with revenues forecast to fall 31% next year, topping off a historical decline of 4.5% a year over the past three years. Compare this against analyst estimates for companies in the wider industry, which suggest that revenues (in aggregate) are expected to grow 9.0% next year. So while a broad number of companies are forecast to decline, unfortunately Rush Factory Oyj is expected to see its sales affected worse than other companies in the industry.
The Bottom Line
The most important thing to take away is that the analyst 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. Given the scope of the downgrades, it would not be a surprise to see the market become more wary of the business.
There might be good reason for analyst bearishness towards Rush Factory Oyj, like dilutive stock issuance over the past year. For more information, you can click here to discover this and the 3 other concerns we've identified.
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.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.
