Yahoo Finance Shorn Like A Sheep: Analysts Just Shaved Their Envision Solar International, Inc. (NASDAQ:EVSI) Forecasts Dramatically
The latest analyst coverage could presage a bad day for Envision Solar International, Inc. (NASDAQ:EVSI), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting analysts have soured majorly on the business.
After the downgrade, the two analysts covering Envision Solar International are now predicting revenues of US$9.0m in 2020. If met, this would reflect a huge 76% improvement in sales compared to the last 12 months. The loss per share is anticipated to greatly reduce in the near future, narrowing 50% to US$0.44. However, before this estimates update, the consensus had been expecting revenues of US$12m and US$0.35 per share in losses. 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.
View our latest analysis for Envision Solar International
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. It's clear from the latest estimates that Envision Solar International's rate of growth is expected to accelerate meaningfully, with the forecast 76% revenue growth noticeably faster than its historical growth of 29% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 7.8% next year. Factoring in the forecast acceleration in revenue, it's pretty clear that Envision Solar International is expected to grow much faster than its 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 Envision Solar International. While analysts did downgrade their revenue estimates, these forecasts still imply revenues will perform better than the wider market. Given the serious cut to this year's outlook, it's clear that analysts have turned more bearish on Envision Solar International, and we wouldn't blame shareholders for feeling a little more cautious themselves.
That said, the analysts might have good reason to be negative on Envision Solar International, given major dilution from new stock issuance in the past year. Learn more, and discover the 2 other concerns 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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