News Flash: 6 Analysts Think Terran Orbital Corporation (NYSE:LLAP) Earnings Are Under Threat

The latest analyst coverage could presage a bad day for Terran Orbital Corporation (NYSE:LLAP), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting the analysts have soured majorly on the business.

After the downgrade, the six analysts covering Terran Orbital are now predicting revenues of US$448m in 2024. If met, this would reflect a major 229% improvement in sales compared to the last 12 months. The loss per share is anticipated to greatly reduce in the near future, narrowing 47% to US$0.39. Yet before this consensus update, the analysts had been forecasting revenues of US$572m and losses of US$0.35 per share in 2024. 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 expecting losses per share to increase.

See our latest analysis for Terran Orbital

The consensus price target fell 9.2% to US$5.90, with the analysts clearly concerned about the company following the weaker revenue and earnings outlook.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analysts are definitely expecting Terran Orbital's growth to accelerate, with the forecast 159% annualised growth to the end of 2024 ranking favourably alongside historical growth of 60% per annum over the past three years. Compare this with other companies in the same industry, which are forecast to grow their revenue 7.2% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Terran Orbital to grow faster than the wider industry.

The Bottom Line

The most important thing to note from this downgrade is that the consensus increased its forecast losses next year, suggesting all may not be well at Terran Orbital. Unfortunately, analysts also downgraded their revenue estimates, although our data indicates revenues are expected to perform better 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.

There might be good reason for analyst bearishness towards Terran Orbital, like dilutive stock issuance over the past year. For more information, you can click here to discover this and the 4 other flags we've identified.

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.