Analyst Forecasts Just Became More Bearish On OptimizeRx Corporation (NASDAQ:OPRX)

Today is shaping up negative for OptimizeRx Corporation (NASDAQ:OPRX) shareholders, with the analysts delivering a substantial negative revision to this year's forecasts. There was a fairly draconian cut to their revenue estimates, perhaps an implicit admission that previous forecasts were much too optimistic.

Following the latest downgrade, the current consensus, from the six analysts covering OptimizeRx, is for revenues of US$59m in 2023, which would reflect a discernible 3.4% reduction in OptimizeRx's sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of US$59m in 2023. Overall it looks like OptimizeRx is performing in line with analyst expectations, given the analysts have updated their numbers and there's been no real change to this year's forecast following these updates.

View our latest analysis for OptimizeRx

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the OptimizeRx's past performance and to peers in the same industry. We would highlight that sales are expected to reverse, with a forecast 6.7% annualised revenue decline to the end of 2023. That is a notable change from historical growth of 27% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 12% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - OptimizeRx is expected to lag the wider industry.

The Bottom Line

The most important thing to take away is that analysts reconfirmed their revenue estimates for this year, suggesting that the business is performing in line with market expectations. They also expect company revenue to perform worse 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 OptimizeRx after today.

Unsatisfied? At least one of OptimizeRx's six analysts has provided estimates out to 2025, 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.