Analysts Have Just Cut Their Goodfood Market Corp. (TSE:FOOD) Revenue Estimates By 15%

The latest analyst coverage could presage a bad day for Goodfood Market Corp. (TSE:FOOD), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.

We've discovered 5 warning signs about Goodfood Market. View them for free.

Following the latest downgrade, the current consensus, from the dual analysts covering Goodfood Market, is for revenues of CA$123m in 2025, which would reflect a considerable 11% reduction in Goodfood Market's sales over the past 12 months. Before the latest update, the analysts were foreseeing CA$145m of revenue in 2025. It looks like forecasts have become a fair bit less optimistic on Goodfood Market, given the measurable cut to revenue estimates.

See our latest analysis for Goodfood Market

The consensus price target fell 55% to CA$0.25, with the analysts clearly less optimistic about Goodfood Market's valuation following this update.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. One more thing stood out to us about these estimates, and it's the idea that Goodfood Market's decline is expected to accelerate, with revenues forecast to fall at an annualised rate of 21% to the end of 2025. This tops off a historical decline of 17% 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 2.7% annually. So while a broad number of companies are forecast to grow, unfortunately Goodfood Market 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 Goodfood Market this year. They're also anticipating slower revenue growth than the wider market. Furthermore, there was a cut to the price target, suggesting that the latest news has led to more pessimism about the intrinsic value of the business. Given the stark change in sentiment, we'd understand if investors became more cautious on Goodfood Market after today.

As you can see, the analysts clearly aren't bullish, and there might be good reason for that. We've identified some potential issues with Goodfood Market's financials, such as dilutive stock issuance over the past year. For more information, you can click here to discover this and the 3 other warning signs we've identified.

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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.