What Does The Future Hold For Canfor Pulp Products Inc. (TSE:CFX)? These Analysts Have Been Cutting Their Estimates

One thing we could say about the analysts on Canfor Pulp Products Inc. (TSE:CFX) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. There was a fairly draconian cut to their revenue estimates, perhaps an implicit admission that previous forecasts were much too optimistic.

After the downgrade, the three analysts covering Canfor Pulp Products are now predicting revenues of CA$1.1b in 2021. If met, this would reflect a modest 4.8% improvement in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing CA$1.3b of revenue in 2021. It looks like forecasts have become a fair bit less optimistic on Canfor Pulp Products, given the measurable cut to revenue estimates.

See our latest analysis for Canfor Pulp Products

Of course, another way to look at these forecasts is to place them into context against the industry itself. For example, we noticed that Canfor Pulp Products' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 9.8% growth to the end of 2021 on an annualised basis. That is well above its historical decline of 3.2% a year over the past five years. What's also interesting is that our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue decline 11% annually for the foreseeable future. So it's pretty clear that Canfor Pulp Products is expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that analysts cut their revenue estimates for this year. The analysts also expect revenues to perform better than the wider market. Given the stark change in sentiment, we'd understand if investors became more cautious on Canfor Pulp Products after today.

Unanswered questions? At least one of Canfor Pulp Products' three analysts has provided estimates out to 2023, which can be seen 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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