Airgain, Inc. (NASDAQ:AIRG) Analysts Are Reducing Their Forecasts For This Year

The latest analyst coverage could presage a bad day for Airgain, Inc. (NASDAQ:AIRG), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting the analysts have soured majorly on the business.

Following the latest downgrade, the four analysts covering Airgain provided consensus estimates of US$62m revenue in 2023, which would reflect a considerable 12% decline on its sales over the past 12 months. The loss per share is expected to ameliorate slightly, reducing to US$0.86. Yet prior to the latest estimates, the analysts had been forecasting revenues of US$70m and losses of US$0.72 per share in 2023. 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.

View our latest analysis for Airgain

The consensus price target fell 16% to US$7.38, with the analysts clearly concerned about the company following the weaker revenue and earnings outlook.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that sales are expected to reverse, with a forecast 23% annualised revenue decline to the end of 2023. That is a notable change from historical growth of 5.7% 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 5.3% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Airgain is expected to lag the wider industry.

The Bottom Line

The most important thing to note from this downgrade is that the consensus increased its forecast losses this year, suggesting all may not be well at Airgain. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. With a serious cut to this year's expectations and a falling price target, we wouldn't be surprised if investors were becoming wary of Airgain.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Airgain analysts - going out to 2025, 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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