Yahoo Finance Analyst Forecasts Just Got A Whole Lot More Bearish On Total Energy Services Inc. (TSE:TOT)
The analysts covering Total Energy Services Inc. (TSE:TOT) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. 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 six analysts covering Total Energy Services, is for revenues of CA$422m in 2020, which would reflect a substantial 37% reduction in Total Energy Services' sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of CA$475m in 2020. It looks like forecasts have become a fair bit less optimistic on Total Energy Services, given the measurable cut to revenue estimates.
See our latest analysis for Total Energy Services
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. These estimates imply that sales are expected to slow, with a forecast revenue decline of 37%, a significant reduction from annual growth of 26% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue decline 3.5% annually for the foreseeable future. The forecasts do look bearish for Total Energy Services, since they're expecting it to shrink faster than the industry.
The Bottom Line
The most important thing to take away is that analysts cut their revenue estimates for this year. They're also forecasting for revenues to shrink at a quicker rate than companies in the wider market. Given the serious cut to this year's outlook, it's clear that analysts have turned more bearish on Total Energy Services, and we wouldn't blame shareholders for feeling a little more cautious themselves.
After a downgrade like this, it's pretty clear that previous forecasts were too optimistic. What's more, we've spotted several possible issues with Total Energy Services' business, like its declining profit margins. Learn more, and discover the 4 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.
Love or hate this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.
This article by Simply Wall St is general in nature. 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. Thank you for reading.
