News Flash: 3 Analysts Think Pangaea Logistics Solutions, Ltd. (NASDAQ:PANL) Earnings Are Under Threat

The latest analyst coverage could presage a bad day for Pangaea Logistics Solutions, Ltd. (NASDAQ:PANL), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting the analysts have soured majorly on the business.

After the downgrade, the consensus from Pangaea Logistics Solutions' three analysts is for revenues of US$560m in 2023, which would reflect a considerable 9.9% decline in sales compared to the last year of performance. Statutory earnings per share are anticipated to plunge 40% to US$0.81 in the same period. Before this latest update, the analysts had been forecasting revenues of US$629m and earnings per share (EPS) of US$0.94 in 2023. It looks like analyst sentiment has declined substantially, with a substantial drop in revenue estimates and a real cut to earnings per share numbers as well.

Check out our latest analysis for Pangaea Logistics Solutions

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 13% by the end of 2023. This indicates a significant reduction from annual growth of 18% 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 4.1% annually for the foreseeable future. The forecasts do look bearish for Pangaea Logistics Solutions, since they're expecting it to shrink faster than the industry.

The Bottom Line

The most important thing to take away is that analysts cut their earnings per share estimates, expecting a clear decline in business conditions. 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. After a cut like that, investors could be forgiven for thinking analysts are a lot more bearish on Pangaea Logistics Solutions, and a few readers might choose to steer clear of the stock.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have estimates - from multiple Pangaea Logistics Solutions analysts - going out to 2024, and you can see them 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.