Elm Company (TADAWUL:7203) Analysts Just Trimmed Their Revenue Forecasts By 0.0007%

The latest analyst coverage could presage a bad day for Elm Company (TADAWUL:7203), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Revenue estimates were cut sharply as the analysts signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well.

After this downgrade, Elm's three analysts are now forecasting revenues of ر.س5.2b in 2023. This would be a solid 20% improvement in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing ر.س5.2b of revenue in 2023. From what we can see, it looks like Elm is performing in line with analyst expectations. The the analysts we track have all updated their numbers, and there were no major changes to their forecasts for next year.

Check out our latest analysis for Elm

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of Elm'shistorical trends, as the 15% annualised revenue growth to the end of 2023 is roughly in line with the 18% annual revenue growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 10% annually. So it's pretty clear that Elm is forecast to grow substantially faster than its industry.

The Bottom Line

The most important thing to take away is that analysts reconfirmed their revenue estimates for next year, suggesting that the business is performing in line with market expectations. Analysts also expect revenues to grow faster than the wider market. Given the stark change in sentiment, we'd understand if investors became more cautious on Elm after today.

Looking for more information? At least one of Elm's three analysts has provided estimates out to 2024, which can be seen 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 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.