The d'Amico International Shipping S.A. (BIT:DIS) Analysts Have Been Trimming Their Sales Forecasts

The analysts covering d'Amico International Shipping S.A. (BIT:DIS) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory 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 consensus from two analysts covering d'Amico International Shipping is for revenues of US$185m in 2021, implying a substantial 34% decline in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of US$231m in 2021. The consensus view seems to have become more pessimistic on d'Amico International Shipping, noting the measurable cut to revenue estimates in this update.

View our latest analysis for d'Amico International Shipping

We'd point out that there was no major changes to their price target of US$0.15, suggesting the latest estimates were not enough to shift their view on the value of the business. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic d'Amico International Shipping analyst has a price target of US$0.15 per share, while the most pessimistic values it at US$0.10. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the d'Amico International Shipping's past performance and to peers in the same industry. Over the past five years, revenues have declined around 2.7% annually. Worse, forecasts are essentially predicting the decline to accelerate, with the estimate for an annualised 43% decline in revenue until the end of 2021. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 5.0% per year. So it's pretty clear that, while it does have declining revenues, the analysts also expect d'Amico International Shipping to suffer 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 d'Amico International Shipping after today.

But wait - there's more! At least one of d'Amico International Shipping's two analysts has provided estimates out to 2023, 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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