Yahoo Finance Analysts Just Shaved Their Fluidigm Corporation (NASDAQ:FLDM) Forecasts Dramatically
One thing we could say about the analysts on Fluidigm Corporation (NASDAQ:FLDM) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. 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.
Following the downgrade, the most recent consensus for Fluidigm from its three analysts is for revenues of US$149m in 2021 which, if met, would be a satisfactory 7.8% increase on its sales over the past 12 months. The loss per share is anticipated to greatly reduce in the near future, narrowing 35% to US$0.48. However, before this estimates update, the consensus had been expecting revenues of US$198m and US$0.42 per share in losses. Ergo, there's been a clear change in sentiment, with the analysts administering a notable cut to this year's revenue estimates, while at the same time increasing their loss per share forecasts.
See our latest analysis for Fluidigm
The consensus price target fell 21% to US$10.33, implicitly signalling that lower earnings per share are a leading indicator for Fluidigm's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Fluidigm at US$14.00 per share, while the most bearish prices it at US$8.00. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Fluidigm's past performance and to peers in the same industry. It's clear from the latest estimates that Fluidigm's rate of growth is expected to accelerate meaningfully, with the forecast 7.8% revenue growth noticeably faster than its historical growth of 3.0% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 9.6% per year. It seems obvious that, while the future growth outlook is brighter than the recent past, Fluidigm is expected to grow slower than the wider industry.
The Bottom Line
The most important thing to note from this downgrade is that the consensus increased its forecast losses this year, suggesting all may not be well at Fluidigm. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. After such a stark change in sentiment from analysts, we'd understand if readers now felt a bit wary of Fluidigm.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Fluidigm going out to 2023, 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.
This article by Simply Wall St is general in nature. 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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