Yahoo Finance The Katapult Holdings, Inc. (NASDAQ:KPLT) Analysts Have Been Trimming Their Sales Forecasts
Market forces rained on the parade of Katapult Holdings, Inc. (NASDAQ:KPLT) shareholders today, when the analysts downgraded their 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. Surprisingly the share price has been buoyant, rising 20% to US$2.24 in the past 7 days. Whether the downgrade will have a negative impact on demand for shares is yet to be seen.
Following the latest downgrade, the current consensus, from the two analysts covering Katapult Holdings, is for revenues of US$265m in 2022, which would reflect a chunky 13% reduction in Katapult Holdings' sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of US$327m in 2022. It looks like forecasts have become a fair bit less optimistic on Katapult Holdings, given the substantial drop in revenue estimates.
See our latest analysis for Katapult Holdings
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Katapult Holdings' past performance and to peers in the same industry. We would highlight that sales are expected to reverse, with a forecast 13% annualised revenue decline to the end of 2022. That is a notable change from historical growth of 45% over the last three years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 9.5% annually for the foreseeable future. It's pretty clear that Katapult Holdings' revenues are expected to perform substantially worse than the wider industry.
The Bottom Line
The clear low-light was that analysts slashing their revenue forecasts for Katapult Holdings this year. They're also anticipating slower revenue growth than the wider market. Given the stark change in sentiment, we'd understand if investors became more cautious on Katapult Holdings after today.
As you can see, the analysts clearly aren't bullish, and there might be good reason for that. We've identified some potential issues with Katapult Holdings' financials, such as concerns around earnings quality. Learn more, and discover the 1 other flag we've identified, 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.
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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.
