Yahoo Finance Analysts Are Much More Bearish On VOTI Detection Inc. (CVE:VOTI) Than They Used To Be
The analysts covering VOTI Detection Inc. (CVE:VOTI) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. Both revenue and earnings per share (EPS) estimates were cut sharply as the analysts factored in the latest outlook for the business, concluding that they were too optimistic previously.
Following the downgrade, the consensus from twin analysts covering VOTI Detection is for revenues of CA$25m in 2020, implying a definite 9.3% decline in sales compared to the last 12 months. Losses are presumed to reduce, shrinking 15% from last year to CA$0.17. Yet before this consensus update, the analysts had been forecasting revenues of CA$32m and losses of CA$0.12 per share in 2020. 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.
Check out our latest analysis for VOTI Detection
The consensus price target fell 37% to CA$2.00, with the analysts clearly concerned about the company following the weaker revenue and earnings outlook.
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. We would highlight that sales are expected to reverse, with the forecast 9.3% revenue decline a notable change from historical growth of 29% over the last year. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 2.7% next year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - VOTI Detection is expected to lag the wider industry.
The Bottom Line
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.
There might be good reason for analyst bearishness towards VOTI Detection, like a short cash runway. For more information, you can click here to discover this and the 4 other warning signs 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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