Downgrade: Here's How This Analyst Sees Skillsoft Corp. (NYSE:SKIL) Performing In The Near Term

The analyst covering Skillsoft Corp. (NYSE:SKIL) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. Revenue and earnings per share (EPS) forecasts were both revised downwards, with the analyst seeing grey clouds on the horizon.

Following the latest downgrade, the one analyst covering Skillsoft provided consensus estimates of US$573m revenue in 2023, which would reflect a chunky 11% decline on its sales over the past 12 months. Losses are supposed to balloon 49% to US$0.64 per share. Yet prior to the latest estimates, the analyst had been forecasting revenues of US$759m and losses of US$0.54 per share in 2023. So there's been quite a change-up of views after the recent consensus updates, with the analyst making a serious cut to their revenue forecasts while also expecting losses per share to increase.

Check out our latest analysis for Skillsoft

The consensus price target fell 29% to US$6.00, implicitly signalling that lower earnings per share are a leading indicator for Skillsoft's valuation.

The Bottom Line

The most important thing to take away is that the analyst increased their loss per share estimates for this year. After such a stark change in sentiment from the analyst, we'd understand if readers now felt a bit wary of Skillsoft.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2023, which can be seen 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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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.