Yahoo Finance EcoSynthetix Inc. (TSE:ECO) Just Reported, And Analysts Assigned A US$1.50 Price Target
Investors in EcoSynthetix Inc. (TSE:ECO) had a good week, as its shares rose 3.2% to close at CA$1.95 following the release of its quarterly results. It was an okay report, and revenues came in at US$4.2m, approximately in line with analyst estimates leading up to the results announcement. Earnings are an important time for investors, as they can track a company's performance, look at what the analyst is forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimate to see what could be in store for next year.
Check out our latest analysis for EcoSynthetix
Taking into account the latest results, the lone analyst covering EcoSynthetix provided consensus estimates of US$17.4m revenue in 2020, which would reflect a measurable 4.4% decline on its sales over the past 12 months. Before this earnings result, the analyst had predicted US$19.4m revenue in 2020, although there was no accompanying EPS estimate. The consensus view seems to have become more pessimistic on EcoSynthetix, noting the substantial drop in revenue estimates following last week's results.
The average price target fell 25% to US$1.50, withthe analyst clearly having become less optimistic about EcoSynthetix'sprospects following its latest earnings.
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. These estimates imply that sales are expected to slow, with a forecast revenue decline of 4.4%, a significant reduction from annual growth of 8.0% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 4.0% next year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - EcoSynthetix is expected to lag the wider industry.
The Bottom Line
The most important thing to take away is that the analyst downgraded their revenue estimates for next year. Unfortunately, they also downgraded their revenue estimates, and our data indicates revenues are expected to perform worse than the wider industry. Furthermore, the analyst also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.
We have estimates for EcoSynthetix from one covering analyst, and you can see them free on our platform here.
It is also worth noting that we have found 3 warning signs for EcoSynthetix that you need to take into consideration.
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