The Calix, Inc. (NYSE:CALX) Analysts Have Been Trimming Their Sales Forecasts

Market forces rained on the parade of Calix, Inc. (NYSE:CALX) shareholders today, when the analysts downgraded their forecasts for this year. Revenue estimates were cut sharply as the analysts signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well.

After the downgrade, the consensus from Calix's eight analysts is for revenues of US$853m in 2024, which would reflect a not inconsiderable 16% decline in sales compared to the last year of performance. Before the latest update, the analysts were foreseeing US$952m of revenue in 2024. It looks like forecasts have become a fair bit less optimistic on Calix, given the measurable cut to revenue estimates.

See our latest analysis for Calix

Notably, the analysts have cut their price target 16% to US$38.68, suggesting concerns around Calix's valuation.

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 highlight that sales are expected to reverse, with a forecast 21% annualised revenue decline to the end of 2024. That is a notable change from historical growth of 21% 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 4.6% per year. It's pretty clear that Calix's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to take away is that analysts cut their revenue estimates for this year. They also expect company revenue to perform worse than the wider market. The consensus price target fell measurably, with analysts seemingly not reassured by recent business developments, leading to a lower estimate of Calix's future valuation. 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 Calix after today.

Unsatisfied? At least one of Calix's eight analysts has provided estimates out to 2026, which can be seen for 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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