Broadwind, Inc. (NASDAQ:BWEN) Analysts Are Reducing Their Forecasts For Next Year

One thing we could say about the analysts on Broadwind, Inc. (NASDAQ:BWEN) - 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) estimates were cut sharply as analysts factored in the latest outlook for the business, concluding that they were too optimistic previously.

Following the downgrade, the consensus from three analysts covering Broadwind is for revenues of US$163m in 2024, implying an uneasy 17% decline in sales compared to the last 12 months. After this downgrade, the company is anticipated to report a loss of US$0.19 in 2024, a sharp decline from a profit over the last year. Previously, the analysts had been modelling revenues of US$250m and earnings per share (EPS) of US$0.85 in 2024. There looks to have been a major change in sentiment regarding Broadwind's prospects, with a pretty serious reduction to revenues and the analysts now forecasting a loss instead of a profit.

Check out our latest analysis for Broadwind

The consensus price target fell 26% to US$6.50, with the analysts clearly concerned about the company following the weaker revenue and earnings outlook.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 14% by the end of 2024. This indicates a significant reduction from annual growth of 4.7% 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 8.3% per year. It's pretty clear that Broadwind's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to take away is that analysts are expecting Broadwind to become unprofitable next year. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. Given the scope of the downgrades, it would not be a surprise to see the market become more wary of the business.

After a downgrade like this, it's pretty clear that previous forecasts were too optimistic. What's more, we've spotted several possible issues with Broadwind's business, like dilutive stock issuance over the past year. Learn more, and discover the 3 other risks we've identified, 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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