Yahoo Finance Downgrade: Here's How This Analyst Sees Skillsoft Corp. (NYSE:SKIL) Performing In The Near Term
Market forces rained on the parade of Skillsoft Corp. (NYSE:SKIL) shareholders today, when the covering analyst downgraded their forecasts for this year. Revenue and earnings per share (EPS) forecasts were both revised downwards, with the analyst seeing grey clouds on the horizon.
Following the downgrade, the consensus from sole analyst covering Skillsoft is for revenues of US$573m in 2023, implying a not inconsiderable 11% decline in sales compared to the last 12 months. Losses are supposed to balloon 49% to US$0.64 per share. However, before this estimates update, the consensus had been expecting revenues of US$759m and US$0.54 per share in losses. Ergo, there's been a clear change in sentiment, with the analyst administering a notable cut to this year's revenue estimates, while at the same time increasing their loss per share forecasts.
Check out our latest analysis for Skillsoft
The consensus price target fell 29% to US$6.00, with the analyst clearly concerned about the company following the weaker revenue and earnings outlook.
The Bottom Line
The most important thing to take away is that the analyst increased their loss per share estimates for this year. With a serious cut to this year's expectations and a falling price target, we wouldn't be surprised if investors were becoming wary of Skillsoft.
Still, the long-term prospects of the business are much more relevant than next year's earnings. At least one analyst has provided forecasts out to 2023, which can be seen for free on our platform here.
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.
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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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