Brokers

This Broker Just Slashed Their Winton Land Limited (NZSE:WIN) Earnings Forecasts

The latest analyst coverage could presage a bad day for Winton Land Limited (NZSE:WIN), with the covering analyst making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Revenue and earnings per share (EPS) forecasts were both revised downwards, with the analyst seeing grey clouds on the horizon. The stock price has risen 5.0% to NZ$2.50 over the past week. It will be interesting to see if this downgrade motivates investors to start selling their holdings.

Following the latest downgrade, the solo analyst covering Winton Land provided consensus estimates of NZ$167m revenue in 2024, which would reflect an uncomfortable 18% decline on its sales over the past 12 months. Statutory earnings per share are supposed to decrease 8.0% to NZ$0.12 in the same period. Prior to this update, the analyst had been forecasting revenues of NZ$185m and earnings per share (EPS) of NZ$0.14 in 2024. Indeed, we can see that the analyst is a lot more bearish about Winton Land’s prospects, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.

See our latest analysis for Winton Land

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These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Winton Land’s past performance and to peers in the same industry. One more thing stood out to us about these estimates, and it’s the idea that Winton Land’s decline is expected to accelerate, with revenues forecast to fall at an annualised rate of 18% to the end of 2024. This tops off a historical decline of 1.8% a year over the past year. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 7.8% per year. So while a broad number of companies are forecast to grow, unfortunately Winton Land is expected to see its sales affected worse than other companies in the industry.

The Bottom Line

The biggest issue in the new estimates is that the analyst has reduced their earnings per share estimates, suggesting business headwinds lay ahead for Winton Land. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. Given the serious cut to this year’s outlook, it’s clear that the analyst has turned more bearish on Winton Land, and we wouldn’t blame shareholders for feeling a little more cautious themselves.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have analyst estimates for Winton Land going out as far as 2026, 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 that insiders are buying.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

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