Rockwell Medical, Inc. (NASDAQ:RMTI) Analysts Just Trimmed Their Revenue Forecasts By 15%

Today is shaping up negative for Rockwell Medical, Inc. (NASDAQ:RMTI) shareholders, with the analysts delivering a substantial negative revision to next year's forecasts. Revenue estimates were cut sharply as the analysts signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well.

After the downgrade, the consensus from Rockwell Medical's dual analysts is for revenues of US$93m in 2025, which would reflect a small 6.0% decline in sales compared to the last year of performance. Losses are expected to turn into profits real soon, with the analysts forecasting US$0.07 in per-share earnings. Previously, the analysts had been modelling revenues of US$109m and earnings per share (EPS) of US$0.07 in 2025. Indeed we can see that the consensus opinion has undergone some fundamental changes following the recent consensus updates, with a substantial drop in revenues and some minor tweaks to earnings numbers.

View our latest analysis for Rockwell Medical

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 4.8% by the end of 2025. This indicates a significant reduction from annual growth of 9.5% 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 8.3% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Rockwell Medical is expected to lag the wider industry.

The Bottom Line

The most obvious conclusion from this consensus update is that there's been no major change in the business' prospects in recent times, with analysts holding earnings per share steady, in line with previous estimates. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales 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 Rockwell Medical after today.

That said, the analysts might have good reason to be negative on Rockwell Medical, given dilutive stock issuance over the past year. Learn more, and discover the 2 other flags we've identified, for 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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