Revenue DeclineA recent negative revenue growth rate signals weakening top-line momentum. Persisting decline over several quarters can erode scale benefits, pressure fixed-cost absorption, and reduce competitiveness when bidding, making margin maintenance harder over the medium term.
Earnings PressureNegative EPS growth indicates profitability under pressure, potentially from lower revenue or one-off items. Continued EPS contraction can limit retained earnings, constrain reinvestment and dividend reliability, and reduce capacity to fund strategic initiatives without external financing.
Cash Flow VolatilityWhile recent FCF was strong, historical volatility undermines predictability of internal funding. Fluctuating cash flows complicate multi-quarter planning for capex and dividends, increase reliance on cash buffers or debt in downturns, and raise execution risk on long-term projects.