Revenue Downgrade: Here's What Analysts Forecast For Fertiglobe plc (ADX:FERTIGLB)

Market forces rained on the parade of Fertiglobe plc (ADX:FERTIGLB) shareholders today, when the analysts downgraded their forecasts for this year. Revenue estimates were cut sharply as the analysts signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well.

Following the downgrade, the consensus from eight analysts covering Fertiglobe is for revenues of US$2.7b in 2023, implying a sizeable 40% decline in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing US$3.0b of revenue in 2023. It looks like forecasts have become a fair bit less optimistic on Fertiglobe, given the substantial drop in revenue estimates.

See our latest analysis for Fertiglobe

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 a forecast 50% annualised revenue decline to the end of 2023. That is a notable change from historical growth of 15% over the last year. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 11% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Fertiglobe is expected to lag the wider industry.

The Bottom Line

The most important thing to take away is that analysts cut their revenue estimates for this year. They're also anticipating slower revenue growth than the wider market. Given the stark change in sentiment, we'd understand if investors became more cautious on Fertiglobe after today.

Of course, there's always more to the story. We have estimates for Fertiglobe from its eight analysts out until 2025, and you can see them 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.