The analysts covering UBM Development AG (VIE:UBS) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory 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.
After the downgrade, the five analysts covering UBM Development are now predicting revenues of €244m in 2026. If met, this would reflect a huge 51% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to shoot up 3,245% to €0.90. Prior to this update, the analysts had been forecasting revenues of €281m and earnings per share (EPS) of €1.25 in 2026. It looks like analyst sentiment has declined substantially, with a substantial drop in revenue estimates and a large cut to earnings per share numbers as well.
See our latest analysis for UBM Development
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the UBM Development's past performance and to peers in the same industry. For example, we noticed that UBM Development's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 51% growth to the end of 2026 on an annualised basis. That is well above its historical decline of 18% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 0.009% annually. So it looks like UBM Development is expected to grow faster than its competitors, at least for a while.
The Bottom Line
The biggest issue in the new estimates is that analysts have reduced their earnings per share estimates, suggesting business headwinds lay ahead for UBM Development. While analysts did downgrade their revenue estimates, these forecasts still imply revenues will 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 UBM Development, 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. At Simply Wall St, we have a full range of analyst estimates for UBM Development going out to 2028, and you can see them free on our platform here.
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 with high insider ownership.
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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.