Broadwind, Inc. (NASDAQ:BWEN) Analysts Just Slashed This Year's Estimates

Market forces rained on the parade of Broadwind, Inc. (NASDAQ:BWEN) shareholders today, when the analysts downgraded their forecasts for this year. Both revenue and earnings per share (EPS) estimates were cut sharply as the analysts factored in the latest outlook for the business, concluding that they were too optimistic previously.

After the downgrade, the three analysts covering Broadwind are now predicting revenues of US$150m in 2025. If met, this would reflect a credible 5.0% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to rise 9.8% to US$0.057. Prior to this update, the analysts had been forecasting revenues of US$178m and earnings per share (EPS) of US$0.21 in 2025. It looks like analyst sentiment has declined substantially, with a measurable cut to revenue estimates and a large cut to earnings per share numbers as well.

Check out our latest analysis for Broadwind

The consensus price target fell 13% to US$4.00, with the weaker earnings outlook clearly leading analyst valuation estimates.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Broadwind's past performance and to peers in the same industry. One thing stands out from these estimates, which is that Broadwind is forecast to grow faster in the future than it has in the past, with revenues expected to display 5.0% annualised growth until the end of 2025. If achieved, this would be a much better result than the 1.8% annual decline 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 8.3% per year. So although Broadwind's revenue growth is expected to improve, it is still expected to grow slower than the industry.

The Bottom Line

The most important thing to take away is that analysts cut their earnings per share estimates, expecting a clear decline in business conditions. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. With a serious cut to this year's expectations and a falling price target, we wouldn't be surprised if investors were becoming wary of Broadwind.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Broadwind analysts - going out to 2026, and you can see them 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 with high insider ownership.

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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.