Revenue Downgrade: Here's What Analysts Forecast For Doro AB (publ) (STO:DORO)

Market forces rained on the parade of Doro AB (publ) (STO:DORO) shareholders today, when the analysts downgraded their forecasts for next year. There was a fairly draconian cut to their revenue estimates, perhaps an implicit admission that previous forecasts were much too optimistic. Shares are up 5.9% to kr68.00 in the past week. Investors could be forgiven for changing their mind on the business following the downgrade; but it's not clear if the revised forecasts will lead to selling activity.

Following the latest downgrade, the current consensus, from the dual analysts covering Doro, is for revenues of kr1.3b in 2022, which would reflect an uneasy 20% reduction in Doro's sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of kr1.7b in 2022. It looks like forecasts have become a fair bit less optimistic on Doro, given the pretty serious reduction to revenue estimates.

Check out our latest analysis for Doro

There was no particular change to the consensus price target of kr73.00, with Doro's latest outlook seemingly not enough to result in a change of valuation.

Of course, another way to look at these forecasts is to place them into context against the industry itself. One more thing stood out to us about these estimates, and it's the idea that Doro's decline is expected to accelerate, with revenues forecast to fall at an annualised rate of 16% to the end of 2022. This tops off a historical decline of 3.1% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 9.8% per year. So while a broad number of companies are forecast to grow, unfortunately Doro is expected to see its sales affected worse than other companies in the industry.

The Bottom Line

The most important thing to take away is that analysts cut their revenue estimates for next year. They're also anticipating slower revenue growth than the wider market. Given the stark change in sentiment, we'd understand if investors became more cautious on Doro after today.

Unsatisfied? At least one of Doro's dual analysts has provided estimates out to 2023, 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.