These Analysts Think Synchronoss Technologies, Inc.'s (NASDAQ:SNCR) Sales Are Under Threat

The latest analyst coverage could presage a bad day for Synchronoss Technologies, Inc. ( NASDAQ:SNCR ), 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. Notably, revenue forecasts were likely revised downward due to the strategic divestment of non-core business segments.

Following the latest downgrade, the three analysts covering Synchronoss Technologies provided consensus estimates of US$227m revenue in 2024, which would reflect a noticeable 4.8% decline on its sales over the past 12 months. Before the latest update, the analysts were foreseeing US$255m of revenue in 2024. It looks like forecasts have become a fair bit less optimistic on Synchronoss Technologies, given the substantial drop in revenue estimates.

Check out our latest analysis for Synchronoss Technologies

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would also point out that the forecast 3.9% annualised revenue decline to the end of 2024 is better than the historical trend, which saw revenues shrink 6.8% annually 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 revenue grow 12% per year. So it's pretty clear that, while it does have declining revenues, the analysts also expect Synchronoss Technologies to suffer worse than the wider industry.

The Bottom Line

The clear low-light was that analysts slashing their revenue forecasts for Synchronoss Technologies next year. They're also anticipating slower revenue growth than the wider market. Given the stark change in sentiment, we'd understand if investors became more cautious on Synchronoss Technologies after today.

Of course, this isn't the full story. We have estimates for Synchronoss Technologies from its three analysts out until 2024, and you can see them 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.