Analyst Forecasts Just Became More Bearish On PhenomeX Inc. (NASDAQ:CELL)

The latest analyst coverage could presage a bad day for PhenomeX Inc. (NASDAQ:CELL), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.

Following the downgrade, the latest consensus from PhenomeX's seven analysts is for revenues of US$80m in 2023, which would reflect a satisfactory 3.8% improvement in sales compared to the last 12 months. Per-share losses are expected to see a sharp uptick, reaching US$1.12. Yet before this consensus update, the analysts had been forecasting revenues of US$96m and losses of US$1.12 per share in 2023. So there's been quite a change-up of views after the recent consensus updates, with the analysts making a serious cut to their revenue forecasts while also making no real change to the loss per share numbers.

Check out our latest analysis for PhenomeX

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that PhenomeX's revenue growth is expected to slow, with the forecast 5.1% annualised growth rate until the end of 2023 being well below the historical 13% p.a. growth over the last three years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 8.1% per year. Factoring in the forecast slowdown in growth, it seems obvious that PhenomeX is also expected to grow slower than other industry participants.

The Bottom Line

Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that PhenomeX's revenues are expected to grow slower than the wider market. Given the stark change in sentiment, we'd understand if investors became more cautious on PhenomeX after today.

So things certainly aren't looking great, and you should also know that we've spotted some potential warning signs with PhenomeX, including dilutive stock issuance over the past year. For more information, you can click here to discover this and the 4 other flags we've identified.

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.