Revenue Downgrade: Here's What Analysts Forecast For Cineworld Group plc (LON:CINE)

Market forces rained on the parade of Cineworld Group plc (LON:CINE) shareholders today, when the analysts downgraded their forecasts for this year. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.

After the downgrade, the consensus from Cineworld Group's ten analysts is for revenues of US$1.0b in 2020, which would reflect a substantial 66% decline in sales compared to the last year of performance. Per-share losses are expected to explode, reaching US$1.45 per share. Yet prior to the latest estimates, the analysts had been forecasting revenues of US$1.3b and losses of US$1.45 per share in 2020. So there's definitely been a change in sentiment in this update, with the analysts administering a substantial haircut to this year's revenue estimates, while at the same time holding losses per share steady.

View our latest analysis for Cineworld Group

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that sales are expected to reverse, with the forecast 66% revenue decline a notable change from historical growth of 35% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 23% annually for the foreseeable future. It's pretty clear that Cineworld Group's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. Given the stark change in sentiment, we'd understand if investors became more cautious on Cineworld Group after today.

Still, the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Cineworld Group going out to 2023, and you can see them free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.

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