Bearish: This Analyst Is Revising Their Coda Octopus Group, Inc. (NASDAQ:CODA) Revenue and EPS Prognostications

Today is shaping up negative for Coda Octopus Group, Inc. (NASDAQ:CODA) shareholders, with the covering analyst delivering a substantial negative revision to next year's forecasts. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting the analyst has soured majorly on the business.

After the downgrade, the single analyst covering Coda Octopus Group is now predicting revenues of US$26m in 2024. If met, this would reflect a sizeable 24% improvement in sales compared to the last 12 months. Per-share earnings are expected to jump 21% to US$0.45. Prior to this update, the analyst had been forecasting revenues of US$30m and earnings per share (EPS) of US$0.64 in 2024. Indeed, we can see that the analyst is a lot more bearish about Coda Octopus Group's prospects, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.

Check out our latest analysis for Coda Octopus Group

The consensus price target fell 17% to US$10.00, with the weaker earnings outlook clearly leading analyst valuation estimates.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analyst is definitely expecting Coda Octopus Group's growth to accelerate, with the forecast 19% annualised growth to the end of 2024 ranking favourably alongside historical growth of 1.1% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.2% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analyst also expect Coda Octopus Group to grow faster than the wider industry.

The Bottom Line

The biggest issue in the new estimates is that the analyst has reduced their earnings per share estimates, suggesting business headwinds lay ahead for Coda Octopus Group. Unfortunately, the analyst also downgraded their revenue estimates, although our data indicates revenues are expected to perform better than the wider market. Given the scope of the downgrades, it would not be a surprise to see the market become more wary of the business.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for Coda Octopus Group going out as far as 2025, 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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