COBZ

CoBiz Financial Inc.

0.1100
USD
0.00%
0.1100
USD
0.00%
0.0000 0.0000
52 weeks
52 weeks

Mkt Cap 4.66M

Shares Out 42.40M

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Venus Concept Inc. (NASDAQ:VERO) Analysts Just Cut Their EPS Forecasts Substantially

Market forces rained on the parade of Venus Concept Inc. (NASDAQ:VERO) shareholders today, when the analysts downgraded their forecasts for this year. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting analysts have soured majorly on the business. Following this downgrade, Venus Concept's four analysts are forecasting 2022 revenues to be US$111m, approximately in line with the last 12 months. Losses are presumed to reduce, shrinking 11% from last year to US$0.46. However, before this estimates update, the consensus had been expecting revenues of US$127m and US$0.28 per share in losses. Ergo, there's been a clear change in sentiment, with the analysts administering a notable cut to this year's revenue estimates, while at the same time increasing their loss per share forecasts. The consensus price target fell 38% to US$2.75, with the analysts clearly concerned about the company following the weaker revenue and earnings outlook. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Venus Concept at US$8.25 per share, while the most bearish prices it at US$1.00. With such a wide range in price targets, the analysts are almost certainly betting on widely diverse outcomes for the underlying business. With this in mind, we wouldn't rely too heavily on the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business. 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. The period to the end of 2022 brings more of the same, according to the analysts, with revenue forecast to display 0.5% growth on an annualised basis. That is in line with its 0.6% annual growth over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 7.9% per year. So it's pretty clear that Venus Concept is expected to grow slower than similar companies in the same industry. The most important thing to take away is that analysts increased their loss per share estimates for this year. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. Given the scope of the downgrades, it would not be a surprise to see the market become more wary of the business. That said, the analysts might have good reason to be negative on Venus Concept, given dilutive stock issuance over the past year. For more information, you can click here to discover this and the 2 other warning signs we've identified. Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. 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. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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