Analysts Just Made A Major Revision To Their Charlotte's Web Holdings, Inc. (TSE:CWEB) Revenue Forecasts

The analysts covering Charlotte's Web Holdings, Inc. (TSE:CWEB) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.

Following the downgrade, the latest consensus from Charlotte's Web Holdings' three analysts is for revenues of US$72m in 2023, which would reflect a modest 4.0% improvement in sales compared to the last 12 months. Losses are predicted to fall substantially, shrinking 68% to US$0.09 per share. However, before this estimates update, the consensus had been expecting revenues of US$78m and US$0.18 per share in losses. Although the revenue estimates have fallen somewhat, Charlotte's Web Holdings' future looks a little different to the past, with a considerable decrease in the loss per share forecasts in particular.

Check out our latest analysis for Charlotte's Web Holdings

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analysts are definitely expecting Charlotte's Web Holdings' growth to accelerate, with the forecast 8.1% annualised growth to the end of 2023 ranking favourably alongside historical growth of 2.1% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 11% per year. So it's clear that despite the acceleration in growth, Charlotte's Web Holdings is expected to grow meaningfully slower than the industry average.

The Bottom Line

Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that Charlotte's Web Holdings' revenues are expected to grow slower than the wider market. Often, one downgrade can set off a daisy-chain of cuts, especially if an industry is in decline. So we wouldn't be surprised if the market became a lot more cautious on Charlotte's Web Holdings after today.

Still, the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Charlotte's Web Holdings going out to 2024, 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.