What Does The Future Hold For Videndum Plc (LON:VID)? These Analysts Have Been Cutting Their Estimates

One thing we could say about the analysts on Videndum Plc (LON:VID) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. 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 current consensus from Videndum's four analysts is for revenues of UK£318m in 2024 which - if met - would reflect a credible 7.6% increase on its sales over the past 12 months. Before the latest update, the analysts were foreseeing UK£318m of revenue in 2024. It looks like the recent earnings updates confirmed that the business is performing in line with expectations, given there's been no meaningful changes in the new revenue estimates.

See our latest analysis for Videndum

There was no particular change to the consensus price target of UK£3.98, with Videndum's latest outlook seemingly not enough to result in a change of valuation.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Videndum's growth to accelerate, with the forecast 16% annualised growth to the end of 2024 ranking favourably alongside historical growth of 0.04% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 8.3% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Videndum to grow faster than the wider industry.

The Bottom Line

The clear take away from these updates is that analysts made no change to their revenue estimates for this year, with the business apparently performing in line with their models. They're also forecasting more rapid revenue growth 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 Videndum 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 Videndum's financials, such as major dilution from new stock issuance in the past year. For more information, you can click here to discover this and the 1 other flag we've identified.

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 with high insider ownership.

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