Analysts Just Shaved Their Pacific Edge Limited (NZSE:PEB) Forecasts Dramatically

One thing we could say about the analysts on Pacific Edge Limited (NZSE:PEB) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting analysts have soured majorly on the business.

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Following the latest downgrade, the current consensus, from the two analysts covering Pacific Edge, is for revenues of NZ$12m in 2026, which would reflect a substantial 37% reduction in Pacific Edge's sales over the past 12 months. Losses are expected to increase substantially, hitting NZ$0.04 per share. However, before this estimates update, the consensus had been expecting revenues of NZ$13m and NZ$0.032 per share in losses. Ergo, there's been a clear change in sentiment, with the analysts administering a notable cut to this year's revenue estimates, while at the same time increasing their loss per share forecasts.

Check out our latest analysis for Pacific Edge

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Pacific Edge's past performance and to peers in the same industry. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 37% by the end of 2026. This indicates a significant reduction from annual growth of 20% 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 7.6% annually for the foreseeable future. It's pretty clear that Pacific Edge's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to note from this downgrade is that the consensus increased its forecast losses this year, suggesting all may not be well at Pacific Edge. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that Pacific Edge's revenues are expected to grow slower than the wider market. Given the serious cut to this year's outlook, it's clear that analysts have turned more bearish on Pacific Edge, and we wouldn't blame shareholders for feeling a little more cautious themselves.

That said, the analysts might have good reason to be negative on Pacific Edge, given dilutive stock issuance over the past year. Learn more, and discover the 3 other warning signs we've identified, for 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 backed by insiders.

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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.