Falling revenue: Here’s what analysts predict for UBM Development AG (VIE:UBS)

One thing we could say about the analysts on UBM Development SA (LIFE:UBS) – they are not optimistic, as they have just made a major negative revision of their short-term (statutory) forecast for the organization. Earnings estimates were cut sharply as analysts signaled a weaker outlook – perhaps a sign that investors should also temper their expectations.

After the downgrade, the four analysts covering UBM Development now forecast revenue of 252 million euros in 2022. If achieved, that would reflect a solid 17% improvement in sales over the past 12 months. Statutory earnings per share are expected to increase by 34% to €3.90. Prior to this update, analysts were forecasting revenue of €305 million and earnings per share (EPS) of €4.72 in 2022. It appears analyst sentiment has declined significantly, with a measurable reduction in estimates revenue and a real reduction in profit by equally sharing numbers.

Discover our latest analysis for UBM Development

WBAG: UBS Earnings and Revenue Growth August 27, 2022

Analysts made no major changes to their price target of €49.10, suggesting that the downward revisions should not have a long-term impact on UBM Development’s valuation. This is not the only conclusion we can draw from this data, however, as some investors also like to take into account the discrepancy in estimates when evaluating analyst price targets. Currently, the most bullish analyst values ​​UBM Development at €55.00 per share, while the most bearish analyst values ​​it at €41.80. Still, with such a narrow range of estimates, it suggests analysts have a pretty good idea of ​​what they think the company is worth.

Of course, another way to look at these predictions is to put them in context with the industry itself. One thing that emerges from these estimates is that UBM Development is expected to grow faster going forward than in the past, with revenue expected to show 23% annualized growth through the end of 2022. achieved, this would be a much better result than the 17% annual decline recorded over the past five years. In contrast, our data suggests that other companies (with analyst coverage) in the industry are expected to see revenue growth of 1.3% annually. So it looks like UBM Development is set to grow faster than its competitors, at least for a while.

The essential

The biggest issue in the new estimates is that analysts have cut their earnings per share estimates, suggesting headwinds are ahead for UBM Development. Although analysts have lowered their earnings estimates, these forecasts still imply that earnings will outperform the broader market. Given the dramatic shift in sentiment, we would understand if investors became more cautious about UBM Development after today.

That said, the company’s long-term earnings trajectory is much more important than next year. At Simply Wall St, we have a full range of analyst estimates for UBM development up to 2024, and you can view them for free on our platform here.

Of course, see the management of the company invest large sums of money in a stock can be just as useful as knowing if analysts are lowering their estimates. So you can also search this free list of stocks that insiders buy.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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