Yahoo Finance Analysts Just Made A Major Revision To Their Dart Group PLC (LON:DTG) Revenue Forecasts
The latest analyst coverage could presage a bad day for Dart Group PLC (LON:DTG), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. There was a fairly draconian cut to their revenue estimates, perhaps an implicit admission that previous forecasts were much too optimistic.
Following the downgrade, the consensus from four analysts covering Dart Group is for revenues of UK£1.5b in 2021, implying a disturbing 59% decline in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of UK£1.8b in 2021. It looks like forecasts have become a fair bit less optimistic on Dart Group, given the sizeable cut to revenue estimates.
Check out our latest analysis for Dart Group
Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that sales are expected to slow, with a forecast revenue decline of 59%, a significant reduction from annual growth of 24% 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 19% next year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Dart Group is expected to lag the wider industry.
The Bottom Line
The clear low-light was that analysts slashing their revenue forecasts for Dart Group this year. They're also anticipating slower revenue growth 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 Dart Group after today.
Worse, Dart Group is labouring under a substantial debt burden, which - if today's forecasts prove accurate - the forecast downgrade could potentially exacerbate. To see more of our financial analysis, you can click through to our free platform to learn more about its balance sheet and specific concerns we've identified.
We also provide an overview of the Dart Group Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.
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