Downgrade: Here's How Analysts See Ardmore Shipping Corporation (NYSE:ASC) Performing In The Near Term

Today is shaping up negative for Ardmore Shipping Corporation (NYSE:ASC) shareholders, with the analysts delivering a substantial negative revision to this year's forecasts. Revenue and earnings per share (EPS) forecasts were both revised downwards, with the analysts seeing grey clouds on the horizon.

Following the latest downgrade, the five analysts covering Ardmore Shipping provided consensus estimates of US$179m revenue in 2025, which would reflect a concerning 56% decline on its sales over the past 12 months. Statutory earnings per share are supposed to plunge 58% to US$1.33 in the same period. Before this latest update, the analysts had been forecasting revenues of US$209m and earnings per share (EPS) of US$1.96 in 2025. Indeed, we can see that the analysts are a lot more bearish about Ardmore Shipping's prospects, administering a measurable cut to revenue estimates and slashing their EPS estimates to boot.

See our latest analysis for Ardmore Shipping

Analysts made no major changes to their price target of US$16.80, suggesting the downgrades are not expected to have a long-term impact on Ardmore Shipping's valuation.

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. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 56% by the end of 2025. This indicates a significant reduction from annual growth of 18% 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 4.5% annually for the foreseeable future. It's pretty clear that Ardmore Shipping's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The biggest issue in the new estimates is that analysts have reduced their earnings per share estimates, suggesting business headwinds lay ahead for Ardmore Shipping. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that Ardmore Shipping's revenues are expected to grow slower than the wider market. We're also surprised to see that the price target went unchanged. Still, deteriorating business conditions (assuming accurate forecasts!) can be a leading indicator for the stock price, so we wouldn't blame investors for being more cautious on Ardmore Shipping after the downgrade.

Still, the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Ardmore Shipping going out to 2027, and you can see them free on our platform here.

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 backed by insiders.

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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.