Pangaea Logistics Solutions, Ltd. (NASDAQ:PANL) Analysts Just Trimmed Their Revenue Forecasts By 12%

The analysts covering Pangaea Logistics Solutions, Ltd. (NASDAQ:PANL) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. There was a fairly draconian cut to their revenue estimates, perhaps an implicit admission that previous forecasts were much too optimistic. Shares are up 6.0% to US$7.79 in the past week. Investors could be forgiven for changing their mind on the business following the downgrade; but it's not clear if the revised forecasts will lead to selling activity.

Following the latest downgrade, the current consensus, from the three analysts covering Pangaea Logistics Solutions, is for revenues of US$449m in 2024, which would reflect a definite 8.4% reduction in Pangaea Logistics Solutions' sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of US$509m in 2024. It looks like forecasts have become a fair bit less optimistic on Pangaea Logistics Solutions, given the measurable cut to revenue estimates.

See our latest analysis for Pangaea Logistics Solutions

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 11% by the end of 2024. This indicates a significant reduction from annual growth of 11% over the last five years. Yet aggregate analyst estimates for other companies in the industry suggest that industry revenues are forecast to decline 0.3% per year. So it's pretty clear that Pangaea Logistics Solutions' revenues are expected to shrink faster than the wider industry.

The Bottom Line

The most important thing to take away is that analysts cut their revenue estimates for this year. Analysts also expect revenues to shrink faster than the wider market. Overall, given the drastic downgrade to this year's forecasts, we'd be feeling a little more wary of Pangaea Logistics Solutions going forwards.

Thirsting for more data? We have estimates for Pangaea Logistics Solutions from its three analysts out until 2025, 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.