Yahoo Finance Revenue Downgrade: Here's What Analysts Forecast For Next Science Limited (ASX:NXS)
Today is shaping up negative for Next Science Limited (ASX:NXS) shareholders, with the analysts delivering a substantial negative revision to this year's forecasts. Revenue estimates were cut sharply as the analysts signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well. Shares are up 7.0% to US$1.37 in the past week. It will be interesting to see if this downgrade motivates investors to start selling their holdings.
After this downgrade, Next Science's two analysts are now forecasting revenues of US$8.1m in 2020. This would be a substantial 99% improvement in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing US$11m of revenue in 2020. The consensus view seems to have become more pessimistic on Next Science, noting the sizeable cut to revenue estimates in this update.
See our latest analysis for Next Science
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Next Science's past performance and to peers in the same industry. It's clear from the latest estimates that Next Science's rate of growth is expected to accelerate meaningfully, with the forecast 99% revenue growth noticeably faster than its historical growth of 25% p.a. over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 16% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Next Science to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that analysts cut their revenue estimates for this year. They're also forecasting more rapid revenue growth than the wider market. Overall, given the drastic downgrade to this year's forecasts, we'd be feeling a little more wary of Next Science going forwards.
Thirsting for more data? At least one of Next Science's two analysts has provided estimates out to 2022, which can be seen for 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.
