G5 Entertainment AB (publ) (STO:G5EN) Analysts Just Cut Their EPS Forecasts Substantially

The analysts covering G5 Entertainment AB (publ) (STO:G5EN) 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) forecasts went under the knife, suggesting analysts have soured majorly on the business.

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After the downgrade, the consensus from G5 Entertainment’s dual analysts is for revenues of kr834m in 2026, which would reflect a definite 17% decline in sales compared to the last year of performance. Statutory earnings per share are anticipated to plummet 33% to kr5.67 in the same period. Before this latest update, the analysts had been forecasting revenues of kr989m and earnings per share (EPS) of kr10.66 in 2026. Indeed, we can see that the analysts are a lot more bearish about G5 Entertainment’s prospects, administering a measurable cut to revenue estimates and slashing their EPS estimates to boot.

View our latest analysis for G5 Entertainment

The consensus price target fell 14% to kr158, with the weaker earnings outlook clearly leading analyst valuation estimates.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. Over the past five years, revenues have declined around 4.7% annually. Worse, forecasts are essentially predicting the decline to accelerate, with the estimate for an annualised 17% decline in revenue until the end of 2026. Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 9.3% annually. So while a broad number of companies are forecast to grow, unfortunately G5 Entertainment is expected to see its sales affected worse than other companies in the 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. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. Given the scope of the downgrades, it would not be a surprise to see the market become more wary of the business.

Still, the long-term prospects of the business are much more relevant than next year’s earnings. We have analyst estimates for G5 Entertainment going out as far as 2028, and you can see them free on our platform here.

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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.