Need To Know: The Consensus Just Cut Its Hammerson plc (LON:HMSO) Estimates For 2023
The analysts covering Hammerson plc (LON:HMSO) 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 eleven analysts covering Hammerson, is for revenues of UK£185m in 2023, which would reflect a concerning 36% reduction in Hammerson's sales over the past 12 months. Before the latest update, the analysts were foreseeing UK£222m of revenue in 2023. It looks like forecasts have become a fair bit less optimistic on Hammerson, given the substantial drop in revenue estimates.
View our latest analysis for Hammerson
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. Over the past five years, revenues have declined around 14% annually. Worse, forecasts are essentially predicting the decline to accelerate, with the estimate for an annualised 36% decline in revenue until the end of 2023. Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 4.3% annually. So it's pretty clear that, while it does have declining revenues, the analysts also expect Hammerson to suffer worse than the wider 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 Hammerson after today.
Want to learn more? At least one of Hammerson's eleven analysts has provided estimates out to 2025, which can be seen 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.
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