Analyst Forecasts Just Became More Bearish On Charge Enterprises, Inc. (NASDAQ:CRGE)

Today is shaping up negative for Charge Enterprises, Inc. (NASDAQ:CRGE) shareholders, with the analysts delivering a substantial negative revision to next year's forecasts. 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 dual analysts covering Charge Enterprises provided consensus estimates of US$577m revenue in 2024, which would reflect a not inconsiderable 10% decline on its sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of US$727m in 2024. The consensus view seems to have become more pessimistic on Charge Enterprises, noting the sizeable cut to revenue estimates in this update.

See our latest analysis for Charge Enterprises

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 8.1% by the end of 2024. This indicates a significant reduction from annual growth of 49% 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 2.3% annually for the foreseeable future. It's pretty clear that Charge Enterprises' 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 next year. They're also anticipating slower revenue growth than the wider market. Overall, given the drastic downgrade to next year's forecasts, we'd be feeling a little more wary of Charge Enterprises going forwards.

There might be good reason for analyst bearishness towards Charge Enterprises, like dilutive stock issuance over the past year. Learn more, and discover the 3 other risks we've identified, 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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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.