Some Tremor International Ltd (LON:TRMR) Analysts Just Made A Major Cut To Next Year's Estimates

One thing we could say about the analysts on Tremor International Ltd (LON:TRMR) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. There was a fairly draconian cut to their revenue estimates, perhaps an implicit admission that previous forecasts were much too optimistic.

After this downgrade, Tremor International's four analysts are now forecasting revenues of US$486m in 2023. This would be a major 47% improvement in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing US$545m of revenue in 2023. It looks like forecasts have become a fair bit less optimistic on Tremor International, given the measurable cut to revenue estimates.

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These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Tremor International's past performance and to peers in the same industry. It's clear from the latest estimates that Tremor International's rate of growth is expected to accelerate meaningfully, with the forecast 36% annualised revenue growth to the end of 2023 noticeably faster than its historical growth of 6.8% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 6.8% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Tremor International is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that analysts cut their revenue estimates for next year. They're also forecasting more rapid revenue growth than the wider market. Given the serious cut to next year's outlook, it's clear that analysts have turned more bearish on Tremor International, and we wouldn't blame shareholders for feeling a little more cautious themselves.

Looking to learn more? At least one of Tremor International's four 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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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.