Analysts Have Just Cut Their CareMax, Inc. (NASDAQ:CMAX) Revenue Estimates By 11%

Market forces rained on the parade of CareMax, Inc. (NASDAQ:CMAX) shareholders today, when the analysts downgraded their forecasts for this year. There was a fairly draconian cut to their revenue estimates, perhaps an implicit admission that previous forecasts were much too optimistic.

Following the downgrade, the most recent consensus for CareMax from its three analysts is for revenues of US$761m in 2023 which, if met, would be a huge 21% increase on its sales over the past 12 months. Losses are predicted to fall substantially, shrinking 44% to US$0.19. However, before this estimates update, the consensus had been expecting revenues of US$854m and US$0.21 per share in losses. We can see there's definitely been a change in sentiment in this update, with the analysts administering a meaningful downgrade to this year's revenue estimates, while at the same time reducing their loss estimates.

See our latest analysis for CareMax

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that CareMax's revenue growth will slow down substantially, with revenues to the end of 2023 expected to display 21% growth on an annualised basis. This is compared to a historical growth rate of 73% over the past three years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 7.7% per year. Even after the forecast slowdown in growth, it seems obvious that CareMax is also expected to grow faster than the wider industry.

The Bottom Line

While analysts did downgrade their revenue estimates, these forecasts still imply revenues will perform better than the wider market. Given the stark change in sentiment, we'd understand if investors became more cautious on CareMax after today.

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 CareMax going out to 2025, 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 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.