Analyst Forecasts Just Became More Bearish On Genasys Inc. (NASDAQ:GNSS)

One thing we could say about the analysts on Genasys Inc. (NASDAQ:GNSS) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. 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 three analysts covering Genasys provided consensus estimates of US$30m revenue in 2024, which would reflect a not inconsiderable 16% decline on its sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of US$35m in 2024. It looks like forecasts have become a fair bit less optimistic on Genasys, given the measurable cut to revenue estimates.

View our latest analysis for Genasys

We'd point out that there was no major changes to their price target of US$4.08, suggesting the latest estimates were not enough to shift their view on the value of the business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 29% by the end of 2024. This indicates a significant reduction from annual growth of 7.0% 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 6.0% annually for the foreseeable future. It's pretty clear that Genasys' 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 Genasys this year. They're also anticipating slower revenue growth than the wider market. Overall, given the drastic downgrade to this year's forecasts, we'd be feeling a little more wary of Genasys going forwards.

But wait - there's more! At least one of Genasys' three analysts has provided estimates out to 2026, which can be seen for free on our platform here.

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