Yahoo Finance What You Need To Know About The Emera Incorporated (TSE:EMA) Analyst Downgrade Today
The latest analyst coverage could presage a bad day for Emera Incorporated (TSE:EMA), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Revenue estimates were cut sharply as the analysts signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well.
After the downgrade, the consensus from Emera's ten analysts is for revenues of CA$6.3b in 2023, which would reflect a considerable 11% decline in sales compared to the last year of performance. Prior to the latest estimates, the analysts were forecasting revenues of CA$7.2b in 2023. The consensus view seems to have become more pessimistic on Emera, noting the measurable cut to revenue estimates in this update.
View our latest analysis for Emera
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Emera's past performance and to peers in the same industry. One more thing stood out to us about these estimates, and it's the idea that Emera's decline is expected to accelerate, with revenues forecast to fall at an annualised rate of 11% to the end of 2023. This tops off a historical decline of 1.0% a year over the past five years. Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 3.0% annually. So while a broad number of companies are forecast to grow, unfortunately Emera is expected to see its sales affected worse than other companies in the industry.
The Bottom Line
The clear low-light was that analysts slashing their revenue forecasts for Emera this year. They also expect company revenue to perform worse than the wider market. Given the stark change in sentiment, we'd understand if investors became more cautious on Emera after today.
That said, the analysts might have good reason to be negative on Emera, given dilutive stock issuance over the past year. Learn more, and discover the 2 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.
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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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