Yahoo Finance Need To Know: The Consensus Just Cut Its TransAct Technologies Incorporated (NASDAQ:TACT) Estimates For 2024
Today is shaping up negative for TransAct Technologies Incorporated (NASDAQ:TACT) shareholders, with the analysts delivering a substantial negative revision to this year's forecasts. 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 dual analysts covering TransAct Technologies, is for revenues of US$46m in 2024, which would reflect a concerning 24% reduction in TransAct Technologies' sales over the past 12 months. After this downgrade, the company is anticipated to report a loss of US$0.25 in 2024, a sharp decline from a profit over the last year. Yet prior to the latest estimates, the analysts had been forecasting revenues of US$54m and losses of US$0.23 per share in 2024. So there's been quite a change-up of views after the recent consensus updates, with the analysts making a serious cut to their revenue forecasts while also expecting losses per share to increase.
Check out our latest analysis for TransAct Technologies
The consensus price target fell 7.9% to US$8.75, implicitly signalling that lower earnings per share are a leading indicator for TransAct Technologies' valuation.
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. We would highlight that sales are expected to reverse, with a forecast 31% annualised revenue decline to the end of 2024. That is a notable change from historical growth of 12% 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 TransAct Technologies' revenues are expected to perform substantially worse than the wider industry.
The Bottom Line
The most important thing to note from this downgrade is that the consensus increased its forecast losses this year, suggesting all may not be well at TransAct Technologies. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that TransAct Technologies' revenues are expected to grow slower than the wider market. The consensus price target fell measurably, with analysts seemingly not reassured by recent business developments, leading to a lower estimate of TransAct Technologies' future valuation. Given the stark change in sentiment, we'd understand if investors became more cautious on TransAct Technologies after today.
That said, the analysts might have good reason to be negative on TransAct Technologies, given its declining profit margins. For more information, you can click here to discover this and the 3 other flags we've identified.
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.
