Bearish: Analysts Just Cut Their Altisource Portfolio Solutions S.A. (NASDAQ:ASPS) Revenue and EPS estimates

One thing we could say about the analysts on Altisource Portfolio Solutions S.A. (NASDAQ:ASPS) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Revenue and earnings per share (EPS) forecasts were both revised downwards, with analysts seeing grey clouds on the horizon.

After the downgrade, the consensus from Altisource Portfolio Solutions' dual analysts is for revenues of US$244m in 2021, which would reflect a substantial 45% decline in sales compared to the last year of performance. The loss per share is anticipated to greatly reduce in the near future, narrowing 91% to US$2.00. Yet before this consensus update, the analysts had been forecasting revenues of US$274m and losses of US$0.84 per share in 2021. Ergo, there's been a clear change in sentiment, with the analysts administering a notable cut to next year's revenue estimates, while at the same time increasing their loss per share forecasts.

See our latest analysis for Altisource Portfolio Solutions

Of course, another way to look at these forecasts is to place them into context against the industry itself. Over the past five years, revenues have declined around 13% annually. Worse, forecasts are essentially predicting the decline to accelerate, with the estimate for an annualised 38% decline in revenue until the end of 2021. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 13% per year. So while a broad number of companies are forecast to grow, unfortunately Altisource Portfolio Solutions is expected to see its sales affected worse than other companies in the industry.

The Bottom Line

The most important thing to take away is that analysts increased their loss per share estimates for next year. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that Altisource Portfolio Solutions' revenues are expected to grow slower than the wider market. We wouldn't be surprised to find shareholders feeling a bit shell-shocked, after these downgrades. It looks like analysts have become a lot more bearish on Altisource Portfolio Solutions, and their negativity could be grounds for caution.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Altisource Portfolio Solutions going out as far as 2021, 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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