Stock Analysis

What Does The Future Hold For Airgain, Inc. (NASDAQ:AIRG)? These Analysts Have Been Cutting Their Estimates

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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. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.

Following the latest downgrade, the four analysts covering Airgain provided consensus estimates of US$74m revenue in 2023, which would reflect a small 2.8% decline on its sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of US$87m in 2023. It looks like forecasts have become a fair bit less optimistic on Airgain, given the measurable cut to revenue estimates.

See our latest analysis for Airgain

NasdaqCM:AIRG Earnings and Revenue Growth March 18th 2023

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 2.8% by the end of 2023. This indicates a significant reduction from annual growth of 5.1% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 4.9% per year. It's pretty clear that Airgain's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The clear low-light was that analysts slashing their revenue forecasts for Airgain this year. They're also anticipating slower revenue growth 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 Airgain after today.

Of course, there's always more to the story. At least one of Airgain's four analysts has provided estimates out to 2024, which can be seen for 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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