Yahoo Finance Next Science Limited (ASX:NXS) Analysts Just Slashed This Year's Revenue Estimates By 13%
One thing we could say about the analysts on Next Science Limited (ASX:NXS) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Revenue estimates were cut sharply as analysts signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well.
Following the downgrade, the current consensus from Next Science's dual analysts is for revenues of US$3.6m in 2020 which - if met - would reflect a sizeable 28% increase on its sales over the past 12 months. Before the latest update, the analysts were foreseeing US$4.1m of revenue in 2020. The consensus view seems to have become more pessimistic on Next Science, noting the measurable cut to revenue estimates in this update.
Check out our latest analysis for Next Science
Of course, another way to look at these forecasts is to place them into context against the industry itself. For example, we noticed that Next Science's rate of growth is expected to accelerate meaningfully, with revenues forecast to grow 28%, well above its historical decline of 38% a year over the past year. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 14% per year. Not only are Next Science's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.
The Bottom Line
The clear low-light was that analysts slashing their revenue forecasts for Next Science this year. The analysts also expect revenues to grow faster 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 Next Science after today.
Want to learn more? We have estimates for Next Science from its dual analysts out until 2023, and you can see them free on our platform here.
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