Yahoo Finance Need To Know: The Consensus Just Cut Its Genasys Inc. (NASDAQ:GNSS) Estimates For 2024
Market forces rained on the parade of Genasys Inc. (NASDAQ:GNSS) 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.
Following the latest downgrade, the three analysts covering Genasys provided consensus estimates of US$30m revenue in 2024, which would reflect an uncomfortable 16% decline on its sales over the past 12 months. Before the latest update, the analysts were foreseeing US$35m of revenue in 2024. It looks like forecasts have become a fair bit less optimistic on Genasys, given the substantial drop in revenue estimates.
See our latest analysis for Genasys
We'd point out that there was no major changes to their price target of US$4.08, suggesting the latest estimates were not enough to shift their view on the value of the business.
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 29% by the end of 2024. This indicates a significant reduction from annual growth of 7.0% 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 6.0% per year. It's pretty clear that Genasys' 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 Genasys 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 Genasys after today.
Unsatisfied? We have estimates for Genasys from its three analysts out until 2026, and you can see them free on our platform here.
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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.
