Polar Capital Holdings plc (LON:POLR) Analysts Just Slashed This Year's Revenue Estimates By 0.006%

Today is shaping up negative for Polar Capital Holdings plc (LON:POLR) shareholders, with the analysts delivering a substantial negative revision to this year's forecasts. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.

Following the latest downgrade, the dual analysts covering Polar Capital Holdings provided consensus estimates of UK£170m revenue in 2023, which would reflect a concerning 24% decline on its sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of UK£170m in 2023. Overall it looks like Polar Capital Holdings is performing in line with analyst expectations, given the analysts have updated their numbers and there's been no real change to this year's forecast following these updates.

See our latest analysis for Polar Capital Holdings

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Polar Capital Holdings' past performance and to peers in the same industry. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 24% by the end of 2023. This indicates a significant reduction from annual growth of 16% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue decline 1.7% annually for the foreseeable future. So it's pretty clear that Polar Capital Holdings' revenues are expected to shrink 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. The analysts also expect revenues to shrink faster than the wider market. Overall, given the drastic downgrade to this year's forecasts, we'd be feeling a little more wary of Polar Capital Holdings going forwards.

Looking for more information? At least one of Polar Capital Holdings' dual analysts has provided estimates out to 2025, 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.