Analysts Have Just Cut Their Zordix AB (publ) (STO:ZORDIX B) Revenue Estimates By 12%

The latest analyst coverage could presage a bad day for Zordix AB (publ) (STO:ZORDIX B), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.

Following the latest downgrade, the two analysts covering Zordix provided consensus estimates of kr1.1b revenue in 2023, which would reflect a discernible 2.0% decline on its sales over the past 12 months. Losses are predicted to fall substantially, shrinking 99% to kr0.028. However, before this estimates update, the consensus had been expecting revenues of kr1.3b and kr0.66 per share in losses. So there's been quite a change-up of views after the recent consensus updates, with the analysts making a serious cut to their revenue forecasts while also reducing the estimated losses the business will incur.

View our latest analysis for Zordix

The consensus price target was broadly unchanged at kr21.25, implying that the business is performing roughly in line with expectations, despite adjustments to both revenue and earnings estimates. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Zordix analyst has a price target of kr26.00 per share, while the most pessimistic values it at kr16.50. This shows there is still some diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that sales are expected to reverse, with a forecast 2.7% annualised revenue decline to the end of 2023. That is a notable change from historical growth of 79% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 6.6% per year. It's pretty clear that Zordix's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that Zordix's revenues are expected to grow slower than the wider market. Given the stark change in sentiment, we'd understand if investors became more cautious on Zordix after today.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Zordix going out as far as 2025, 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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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.