Yahoo Finance These Analysts Think Cytosorbents Corporation's (NASDAQ:CTSO) Sales Are Under Threat
The analysts covering Cytosorbents Corporation (NASDAQ:CTSO) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. There was a fairly draconian cut to their revenue estimates, perhaps an implicit admission that previous forecasts were much too optimistic.
After this downgrade, Cytosorbents' three analysts are now forecasting revenues of US$41m in 2024. This would be a meaningful 12% improvement in sales compared to the last 12 months. Losses are predicted to fall substantially, shrinking 30% to US$0.37 per share. However, before this estimates update, the consensus had been expecting revenues of US$46m and US$0.34 per share in losses. So there's been quite a change-up of views after the recent consensus updates, with the analysts making a serious cut to their revenue forecasts while also expecting losses per share to increase.
Check out our latest analysis for Cytosorbents
Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Cytosorbents' growth to accelerate, with the forecast 12% annualised growth to the end of 2024 ranking favourably alongside historical growth of 8.9% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 7.9% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Cytosorbents is expected to grow much faster than its 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 Cytosorbents. While analysts did downgrade their revenue estimates, these forecasts still imply revenues will perform better than the wider market. Given the stark change in sentiment, we'd understand if investors became more cautious on Cytosorbents after today.
That said, the analysts might have good reason to be negative on Cytosorbents, given a short cash runway. For more information, you can click here to discover this and the 4 other flags we've identified.
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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.
