Analysts Have Just Cut Their Purplebricks Group plc (LON:PURP) Revenue Estimates By 12%

Today is shaping up negative for Purplebricks Group plc (LON:PURP) 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.

After the downgrade, the consensus from Purplebricks Group's three analysts is for revenues of UK£79m in 2023, which would reflect a not inconsiderable 11% decline in sales compared to the last year of performance. Prior to the latest estimates, the analysts were forecasting revenues of UK£90m in 2023. It looks like forecasts have become a fair bit less optimistic on Purplebricks Group, given the substantial drop in revenue estimates.

See our latest analysis for Purplebricks Group

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 11% by the end of 2023. This indicates a significant reduction from annual growth of 13% over the last year. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 1.0% per year. It's pretty clear that Purplebricks Group's revenues are expected to perform substantially worse 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 also expect company revenue to perform worse 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 Purplebricks Group after today.

But wait - there's more! At least one of Purplebricks Group's three 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.