Analysts Have Just Reduced Their Alight, Inc. (NYSE:ALIT) Revenue Estimates By 32% Following Divestiture

The latest analyst coverage could presage a bad day for Alight, Inc. ( NYSE:ALIT ), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders questioning the reason behind it. This report focused on revenue estimates, and it looks as though the consensus view of the business has become more conservative, but for good reason.

Following the latest downgrade, the current consensus, from the nine analysts covering Alight, is for revenues of US$2.4b in 2024, which would reflect a notable 32% reduction in Alight's sales over the past 12 months. This reduction makes sense with the news that Alight recently closed the deal to sell its  Payroll & Professional Services business to H.I.G. Capital for $1.2 Billion. The sale of this business segment has also caused estimated losses to fall substantially, shrinking 78% to US$0.13 per share. Prior to the latest estimates, the analysts had been forecasting revenues of US$3.5b and losses of US$0.13 per share in 2024. So there's been quite a change-up of views after the recent consensus updates, with the analysts accounting for the sale of 30% of Alight's business in the form of a cut to their revenue forecasts while also expecting losses per share to increase.

Check out our latest analysis for Alight

The consensus price target fell 6.3% to US$10.78, with the analysts conscious of the impacts of the sale.

The Bottom Line

The most important thing to take away is that analysts increased their loss per share estimates for this year. They also downgraded their revenue estimates after Alight closed the sale of its Payroll & Professional Services segment. Furthermore, there was a cut to the price target, likely as a way to account for the more streamlined business. Overall, the downgrades to this year's forecasts shouldn't be anything that spooks Alight shareholders.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have estimates - from multiple Alight analysts - going out to 2026, and you can see them free on our platform here.

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