Venture Life Group plc (LON:VLG) Analysts Just Slashed This Year's Revenue Estimates By 10%

The latest analyst coverage could presage a bad day for Venture Life Group plc (LON:VLG), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. There was a fairly draconian cut to their revenue estimates, perhaps an implicit admission that previous forecasts were much too optimistic.

Following the downgrade, the latest consensus from Venture Life Group's two analysts is for revenues of UK£32m in 2021, which would reflect a solid 18% improvement in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing UK£36m of revenue in 2021. The consensus view seems to have become more pessimistic on Venture Life Group, noting the substantial drop in revenue estimates in this update.

Check out our latest analysis for Venture Life Group

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We can infer from the latest estimates that forecasts expect a continuation of Venture Life Group'shistorical trends, as the 18% annualised revenue growth to the end of 2021 is roughly in line with the 18% annual revenue growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 3.6% annually. So it's pretty clear that Venture Life Group is forecast to grow substantially faster than its industry.

The Bottom Line

The clear low-light was that analysts slashing their revenue forecasts for Venture Life Group this year. Analysts also expect revenues to grow faster 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 Venture Life Group after today.

Need some more information? We have estimates for Venture Life Group from its two analysts out until 2022, and you can see them free on our platform here.

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