One thing we could say about the analysts on Good Energy Group PLC (LON:GOOD) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.

After the downgrade, the consensus from Good Energy Group's two analysts is for revenues of UK￡212m in 2024, which would reflect a definite 17% decline in sales compared to the last year of performance. Statutory earnings per share are presumed to soar 49% to UK￡0.24. Prior to this update, the analysts had been forecasting revenues of UK￡255m and earnings per share (EPS) of UK￡0.23 in 2024. Indeed we can see that the consensus opinion has undergone some fundamental changes following the recent consensus updates, with a measurable cut to revenues and some minor tweaks to earnings numbers.

View our latest analysis for Good Energy Group

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. We would highlight that sales are expected to reverse, with a forecast 17% annualised revenue decline to the end of 2024. That is a notable change from historical growth of 21% 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 5.9% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Good Energy Group is expected to lag the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with analysts reconfirming that earnings per share are expected to continue performing in line with their prior expectations. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that Good Energy Group's revenues are expected to grow slower than the wider market. Often, one downgrade can set off a daisy-chain of cuts, especially if an industry is in decline. So we wouldn't be surprised if the market became a lot more cautious on Good Energy Group after today.

There might be good reason for analyst bearishness towards Good Energy Group, like dilutive stock issuance over the past year. Learn more, and discover the 3 other flags we've identified, for free on our platform here.