Yahoo Finance Analysts Just Made A Major Revision To Their MediPharm Labs Corp. (TSE:LABS) Revenue Forecasts
The analysts covering MediPharm Labs Corp. (TSE:LABS) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.
Following the latest downgrade, the current consensus, from the three analysts covering MediPharm Labs, is for revenues of CA$20m in 2022, which would reflect a discernible 3.8% reduction in MediPharm Labs' sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of CA$24m in 2022. It looks like forecasts have become a fair bit less optimistic on MediPharm Labs, given the substantial drop in revenue estimates.
Check out our latest analysis for MediPharm Labs
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. One thing that stands out from these estimates is that shrinking revenues are expected to moderate over the period ending 2022 compared to the historical decline of 61% per annum over the past three years. Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 23% annually. So while a broad number of companies are forecast to grow, unfortunately MediPharm Labs is expected to see its sales affected worse than other companies in the industry.
The Bottom Line
The most important thing to take away is that analysts cut their revenue estimates for 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 MediPharm Labs after today.
Of course, there's always more to the story. We have estimates for MediPharm Labs from its three analysts out until 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.
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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.
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