Analysts Have Just Cut Their Codexis, Inc. (NASDAQ:CDXS) Revenue Estimates By 10%

The analysts covering Codexis, Inc. (NASDAQ:CDXS) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.

After this downgrade, Codexis' eight analysts are now forecasting revenues of US$140m in 2022. This would be a notable 14% improvement in sales compared to the last 12 months. Per-share losses are expected to explode, reaching US$0.68 per share. However, before this estimates update, the consensus had been expecting revenues of US$155m and US$0.66 per share in losses. Ergo, there's been a clear change in sentiment, with the analysts administering a notable cut to this year's revenue estimates, while at the same time increasing their loss per share forecasts.

Check out our latest analysis for Codexis

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Codexis' past performance and to peers in the same industry. The period to the end of 2022 brings more of the same, according to the analysts, with revenue forecast to display 20% growth on an annualised basis. That is in line with its 17% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 7.4% per year. So although Codexis is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that analysts increased their loss per share estimates for this year. While analysts did downgrade their revenue estimates, these forecasts still imply revenues will perform better 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 Codexis after today.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Codexis analysts - going out to 2024, 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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