An analyst at Swissquote Group Holding Ltd (VTX:SQN) has just cut its revenue estimates for 2022

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The covering analyst Swissquote Group Holding AG (VTX:SQN) sent a dose of negativity to shareholders today, by making a substantial revision to their statutory guidance for this year. This report has focused on revenue estimates, and it seems that the consensus view of the company has become much more conservative. The shares rose 7.2% to CHF 122 last week. It will be interesting to see if this downgrade motivates investors to start selling their holdings.

After the downgrade, Swissquote Group Holding’s single analyst consensus expects revenue of 410 million francs in 2022, which would reflect a sizeable 18% drop in sales compared to the last year of performance. Statutory earnings per share are expected to decline by 15% to CHF 11.01 over the same period. Previously, the analyst had modeled revenue of 460 million francs and earnings per share (EPS) of 11.89 francs in 2022. Indeed, we can see that analyst sentiment has dropped significantly after the release of the new consensus. , with a substantial drop in revenue estimates and a small drop in EPS estimates to boot.

Discover our latest analysis for Swissquote Group Holding

SWX: SQN Earnings and Revenue Growth August 12, 2022

Looking at the big picture, one way to make sense of these forecasts is to see how they compare to both past performance and industry growth estimates. These estimates imply that sales are expected to slow, with annualized revenue expected to fall by 18% by the end of 2022. This indicates a significant reduction from the annual growth of 22% over the past five years. Contrast that with our data, which suggests that other companies in the same industry should, overall, see revenue growth of 4.3% annually. So while its revenue is expected to decline, there is no bright side to this cloud – Swissquote Group Holding is expected to lag the broader industry.

The essential

The most important thing to remember is that the analyst cut his earnings per share estimates, expecting a sharp drop in trading conditions. Unfortunately, the analyst has also lowered its revenue estimates, and industry data suggests that Swissquote Group Holding’s revenue is expected to grow more slowly than the broader market. Overall, given the drastic downgrade to this year’s outlook, we would be a bit more wary of Swissquote Group Holding going forward.

That said, the company’s long-term earnings trajectory is much more important than next year. At least one analyst has provided forecasts through 2024, which can be viewed for free on our platform here.

Another way to search for interesting businesses that might be reach an inflection point is to track whether management is buying or selling, with our free list of growing companies insiders are buying.

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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