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Market forces rained on the parade of Singulus Technologies AG (ETR:SNG) shareholders today, when the analysts downgraded their forecasts for this year. Both revenue and earnings per share (EPS) estimates were cut sharply as the analysts factored in the latest outlook for the business, concluding that they were too optimistic previously. Investors however, have been notably more optimistic about Singulus Technologies recently, with the stock price up an impressive 23% to €1.68 in the past week. Whether the downgrade will have a negative impact on demand for shares is yet to be seen.
Following the downgrade, the latest consensus from Singulus Technologies' twin analysts is for revenues of €110m in 2024, which would reflect a sizeable 53% improvement in sales compared to the last 12 months. Losses are predicted to fall substantially, shrinking 89% to €0.10 per share. Previously, the analysts had been modelling revenues of €123m and earnings per share (EPS) of €0.27 in 2024. There looks to have been a major change in sentiment regarding Singulus Technologies' prospects, with a substantial drop in revenues and the analysts now forecasting a loss instead of a profit.
Check out our latest analysis for Singulus Technologies
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's clear from the latest estimates that Singulus Technologies' rate of growth is expected to accelerate meaningfully, with the forecast 53% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 1.8% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 4.6% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Singulus Technologies is expected to grow much faster than its industry.
The Bottom Line
The most important thing to take away is that analysts are expecting Singulus Technologies to become unprofitable this year. Unfortunately, analysts also downgraded their revenue estimates, although our data indicates revenues are expected to perform better than the wider market. We wouldn't be surprised to find shareholders feeling a bit shell-shocked, after these downgrades. It looks like analysts have become a lot more bearish on Singulus Technologies, and their negativity could be grounds for caution.
Still, the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for Singulus Technologies going out as far as 2026, and you can see them free on our platform here.