Yahoo Finance Analysts Have Just Cut Their Star Bulk Carriers Corp. (NASDAQ:SBLK) Revenue Estimates By 12%
One thing we could say about the analysts on Star Bulk Carriers Corp. (NASDAQ:SBLK) - 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 the analysts signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well.
Following the latest downgrade, the five analysts covering Star Bulk Carriers provided consensus estimates of US$814m revenue in 2023, which would reflect a substantial 37% decline on its sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of US$923m in 2023. It looks like forecasts have become a fair bit less optimistic on Star Bulk Carriers, given the substantial drop in revenue estimates.
View our latest analysis for Star Bulk Carriers
There was no particular change to the consensus price target of US$28.00, with Star Bulk Carriers' latest outlook seemingly not enough to result in a change of valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Star Bulk Carriers analyst has a price target of US$33.00 per share, while the most pessimistic values it at US$20.00. This shows there is still some diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 46% by the end of 2023. This indicates a significant reduction from annual growth of 24% 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 Star Bulk Carriers, since they're expecting it to shrink faster than the industry.
The Bottom Line
The clear low-light was that analysts slashing their revenue forecasts for Star Bulk Carriers this year. Analysts also expect revenues to shrink faster than the wider market. Given the stark change in sentiment, we'd understand if investors became more cautious on Star Bulk Carriers after today.
Worse, Star Bulk Carriers is labouring under a substantial debt burden, which - if today's forecasts prove accurate - the forecast downgrade could potentially exacerbate. To see more of our financial analysis, you can click through to our free platform to learn more about its balance sheet and specific concerns we've identified.
We also provide an overview of the Star Bulk Carriers Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.
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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.
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