Stock Analysis

The Cohen & Steers, Inc. (NYSE:CNS) Analyst Just Cut Their Revenue Forecast By 15%

NYSE:CNS
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Market forces rained on the parade of Cohen & Steers, Inc. (NYSE:CNS) shareholders today, when the covering analyst downgraded their forecasts for next year. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.

Following the downgrade, the consensus from solo analyst covering Cohen & Steers is for revenues of US$513m in 2023, implying an uneasy 17% decline in sales compared to the last 12 months. Statutory earnings per share are supposed to decline 17% to US$3.58 in the same period. Prior to this update, the analyst had been forecasting revenues of US$600m and earnings per share (EPS) of US$3.96 in 2023. Indeed, we can see that analyst sentiment has declined measurably after the new consensus came out, with a measurable cut to revenue estimates and a small dip in EPS estimates to boot.

Check out our latest analysis for Cohen & Steers

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NYSE:CNS Earnings and Revenue Growth October 20th 2022

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that sales are expected to reverse, with a forecast 14% annualised revenue decline to the end of 2023. That is a notable change from historical growth of 10% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 6.4% annually for the foreseeable future. It's pretty clear that Cohen & Steers' revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to take away is that the analyst cut their earnings per share estimates, expecting a clear decline in business conditions. Unfortunately the analyst also downgraded their revenue estimates, and industry data suggests that Cohen & Steers' revenues are expected to grow slower than the wider market. Often, one downgrade can set off a daisy-chain of cuts, especially if an industry is in decline. So we wouldn't be surprised if the market became a lot more cautious on Cohen & Steers after today.

That said, the analyst might have good reason to be negative on Cohen & Steers, given recent substantial insider selling. For more information, you can click here to discover this and the 2 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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Find out whether Cohen & Steers is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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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.