One Globus Maritime Limited (NASDAQ:GLBS) Analyst Just Made A Major Cut To Next Year's Estimates

The latest analyst coverage could presage a bad day for Globus Maritime Limited (NASDAQ:GLBS), with the covering analyst making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Both revenue and earnings per share (EPS) estimates were cut sharply as the analyst factored in the latest outlook for the business, concluding that they were too optimistic previously.

Following the downgrade, the current consensus from Globus Maritime's single analyst is for revenues of US$40m in 2024 which - if met - would reflect a sizeable 32% increase on its sales over the past 12 months. Statutory earnings per share are presumed to shoot up 133% to US$0.27. Previously, the analyst had been modelling revenues of US$47m and earnings per share (EPS) of US$0.38 in 2024. Indeed, we can see that the analyst is a lot more bearish about Globus Maritime's prospects, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.

See our latest analysis for Globus Maritime

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Globus Maritime's rate of growth is expected to accelerate meaningfully, with the forecast 45% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 26% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to see a revenue decline of 0.3% annually. So it's clear with the acceleration in growth, Globus Maritime is expected to grow meaningfully 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 Globus Maritime. Sadly they also cut their revenue estimates, although at least the company is expected to perform a bit better than the wider market. After a cut like that, investors could be forgiven for thinking the analyst is a lot more bearish on Globus Maritime, and a few readers might choose to steer clear of the stock.

That said, the covering analyst might have good reason to be negative on Globus Maritime, given its declining profit margins. Learn more, and discover the 2 other warning signs we've identified, for free on our platform here.

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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.

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