Yahoo Finance Surface Transforms Plc (LON:SCE) Analysts Just Slashed This Year's Revenue Estimates By 52%
One thing we could say about the analysts on Surface Transforms Plc (LON:SCE) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. There was a fairly draconian cut to their revenue estimates, perhaps an implicit admission that previous forecasts were much too optimistic.
After the downgrade, the consensus from Surface Transforms' twin analysts is for revenues of UK£1.6m in 2020, which would reflect a stressful 36% decline in sales compared to the last year of performance. Prior to the latest estimates, the analysts were forecasting revenues of UK£3.3m in 2020. The consensus view seems to have become more pessimistic on Surface Transforms, noting the pretty serious reduction to revenue estimates in this update.
View our latest analysis for Surface Transforms
Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that sales are expected to reverse, with the forecast 36% revenue decline a notable change from historical growth of 8.0% 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 5.9% next year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Surface Transforms is expected to lag the wider industry.
The Bottom Line
The clear low-light was that analysts slashing their revenue forecasts for Surface Transforms this year. They're also anticipating slower revenue growth than the wider market. Given the stark change in sentiment, we'd understand if investors became more cautious on Surface Transforms after today.
So things certainly aren't looking great, and you should also know that we've spotted some potential warning signs with Surface Transforms, including dilutive stock issuance over the past year. For more information, you can click here to discover this and the 4 other risks 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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