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Analyst Forecasts Just Became More Bearish On DigitalBridge Group, Inc. (NYSE:DBRG)

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·2-min read
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  • DBRG
  • DBRG-PH
  • DBRG-PI
  • DBRG-PJ

The analysts covering DigitalBridge Group, Inc. (NYSE:DBRG) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. Revenue estimates were cut sharply as analysts signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well.

Following the latest downgrade, the current consensus, from the four analysts covering DigitalBridge Group, is for revenues of US$1.1b in 2021, which would reflect a substantial 22% reduction in DigitalBridge Group's sales over the past 12 months. Losses are predicted to fall substantially, shrinking 60% to US$0.97. Yet prior to the latest estimates, the analysts had been forecasting revenues of US$1.3b and losses of US$0.91 per share in 2021. 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.

View our latest analysis for DigitalBridge Group

earnings-and-revenue-growth
earnings-and-revenue-growth

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 40% by the end of 2021. This indicates a significant reduction from annual growth of 4.4% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 6.4% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - DigitalBridge Group is expected to lag the wider industry.

The Bottom Line

The most important thing to take away is that analysts increased their loss per share estimates for this year. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. Often, one downgrade can set off a daisy-chain of cuts, especially if an industry is in decline. So we wouldn't be surprised if the market became a lot more cautious on DigitalBridge Group after today.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have estimates - from multiple DigitalBridge Group analysts - 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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