Stock Analysis

Analysts Just Made A Major Revision To Their Tremor International Ltd (LON:TRMR) Revenue Forecasts

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Market forces rained on the parade of Tremor International Ltd (LON:TRMR) shareholders today, when the analysts downgraded their forecasts for this year. 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 Tremor International's six analysts is for revenues of US$418m in 2023, which would reflect a substantial 25% improvement in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of US$491m in 2023. It looks like forecasts have become a fair bit less optimistic on Tremor International, given the measurable cut to revenue estimates.

Check out our latest analysis for Tremor International

AIM:TRMR Earnings and Revenue Growth March 17th 2023

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that Tremor International's rate of growth is expected to accelerate meaningfully, with the forecast 25% annualised revenue growth to the end of 2023 noticeably faster than its historical growth of 5.6% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.8% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Tremor International 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. 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 Tremor International after today.

Unanswered questions? At least one of Tremor International's six analysts has provided estimates out to 2024, 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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