Today is shaping up negative for TFF Group (EPA:TFF) shareholders, with the analysts delivering a substantial negative revision to this year's forecasts. 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.
Following the downgrade, the consensus from five analysts covering TFF Group is for revenues of €276m in 2027, implying a considerable 12% decline in sales compared to the last 12 months. Per-share earnings are expected to accumulate 9.7% to €0.45. Before this latest update, the analysts had been forecasting revenues of €347m and earnings per share (EPS) of €1.12 in 2027. Indeed, we can see that the analysts are a lot more bearish about TFF Group's prospects, administering a sizeable cut to revenue estimates and slashing their EPS estimates to boot.
View our latest analysis for TFF Group
The consensus price target fell 11% to €18.16, 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. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 12% by the end of 2027. This indicates a significant reduction from annual growth of 6.3% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 2.9% per year. It's pretty clear that TFF Group's revenues are expected to perform substantially worse than the wider industry.
The Bottom Line
The most important thing to take away is that analysts cut their earnings per share estimates, expecting a clear decline in business conditions. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that TFF Group's revenues are expected to grow slower than the wider market. With a serious cut to this year's expectations and a falling price target, we wouldn't be surprised if investors were becoming wary of TFF Group.
That said, the analysts might have good reason to be negative on TFF Group, given its declining profit margins. For more information, you can click here to discover this and the 3 other flags we've identified.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.