News Flash: One Globus Maritime Limited (NASDAQ:GLBS) Analyst Has Been Trimming Their Revenue Forecasts

Market forces rained on the parade of Globus Maritime Limited (NASDAQ:GLBS) shareholders today, when the covering analyst downgraded their forecasts for this year. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.

After the downgrade, the consensus from Globus Maritime's sole analyst is for revenues of US$28m in 2023, which would reflect a painful 46% decline in sales compared to the last year of performance. Following this this downgrade, earnings are now expected to tip over into loss-making territory, with the analyst forecasting losses of US$0.07 per share in 2023. Before this latest update, the analyst had been forecasting revenues of US$39m and earnings per share (EPS) of US$0.17 in 2023. So we can see that the consensus has become notably more bearish on Globus Maritime's outlook with these numbers, making a sizeable cut to this year's revenue estimates. Furthermore, they expect the business to be loss-making this year, compared to their previous forecasts of a profit.

Check out our latest analysis for Globus Maritime

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. We would highlight that sales are expected to reverse, with a forecast 56% annualised revenue decline to the end of 2023. That is a notable change from historical growth of 36% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue decline 1.7% annually for the foreseeable future. So it's pretty clear that Globus Maritime's revenues are expected to shrink faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analyst is expecting Globus Maritime to become unprofitable this year. Unfortunately they also cut their revenue estimates for this year, and they expect sales to lag the wider market. That said, earnings per share are more important for creating value for shareholders. Given the stark change in sentiment, we'd understand if investors became more cautious on Globus Maritime after today.

So things certainly aren't looking great, and you should also know that we've spotted some potential warning signs with Globus Maritime, including its declining profit margins. Learn more, and discover the 2 other concerns we've identified, 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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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.