Yahoo Finance Luminar Technologies, Inc. (NASDAQ:LAZR) Analysts Just Slashed This Year's Revenue Estimates By 5.1%
The analysts covering Luminar Technologies, Inc. (NASDAQ:LAZR) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. There was a fairly draconian cut to their revenue estimates, perhaps an implicit admission that previous forecasts were much too optimistic.
Following the downgrade, the current consensus from Luminar Technologies' twelve analysts is for revenues of US$92m in 2023 which - if met - would reflect a huge 126% increase on its sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of US$97m in 2023. It looks like the analysts have become a bit less bullish on Luminar Technologies, given the slight decrease in revenue estimates after the latest consensus updates.
Check out our latest analysis for Luminar Technologies
There was no particular change to the consensus price target of US$13.42, with Luminar Technologies' latest outlook seemingly not enough to result in a change of valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Luminar Technologies, with the most bullish analyst valuing it at US$24.00 and the most bearish at US$5.00 per share. With such a wide range in price targets, the analysts are almost certainly betting on widely diverse outcomes for the underlying business. With this in mind, we wouldn't rely too heavily on the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Luminar Technologies' rate of growth is expected to accelerate meaningfully, with the forecast 126% annualised revenue growth to the end of 2023 noticeably faster than its historical growth of 43% p.a. over the past three years. Compare this with other companies in the same industry, which are forecast to grow their revenue 15% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Luminar Technologies to grow faster than the wider industry.
The Bottom Line
The clear low-light was that analysts slashing their revenue forecasts for Luminar Technologies this year. They're also forecasting more rapid revenue growth than the wider market. Overall, given the drastic downgrade to this year's forecasts, we'd be feeling a little more wary of Luminar Technologies going forwards.
Need some more information? At least one of Luminar Technologies' twelve analysts has provided estimates out to 2025, 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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