Pyxis Tankers Inc. (NASDAQ:PXS) Analysts Are Reducing Their Forecasts For This Year

The analysts covering Pyxis Tankers Inc. (NASDAQ:PXS) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. Both revenue and earnings per share (EPS) estimates were cut sharply as the analysts factored in the latest outlook for the business, concluding that they were too optimistic previously.

Following this downgrade, Pyxis Tankers' twin analysts are forecasting 2024 revenues to be US$51m, approximately in line with the last 12 months. Statutory earnings per share are anticipated to tumble 54% to US$1.46 in the same period. Prior to this update, the analysts had been forecasting revenues of US$56m and earnings per share (EPS) of US$1.63 in 2024. Indeed, we can see that the analysts are a lot more bearish about Pyxis Tankers' prospects, administering a measurable cut to revenue estimates and slashing their EPS estimates to boot.

Check out our latest analysis for Pyxis Tankers

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. We would highlight that Pyxis Tankers' revenue growth is expected to slow, with the forecast 2.6% annualised growth rate until the end of 2024 being well below the historical 19% p.a. growth over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue shrink 0.2% per year. So it's clear that despite the slowdown in growth, Pyxis Tankers is still expected to grow meaningfully faster than the wider industry.

The Bottom Line

The biggest issue in the new estimates is that analysts have reduced their earnings per share estimates, suggesting business headwinds lay ahead for Pyxis Tankers. Sadly they also cut their revenue estimates, although at least the company is expected to perform a bit better than the wider market. Given the serious cut to this year's outlook, it's clear that analysts have turned more bearish on Pyxis Tankers, and we wouldn't blame shareholders for feeling a little more cautious themselves.

There might be good reason for analyst bearishness towards Pyxis Tankers, like concerns around earnings quality. For more information, you can click here to discover this and the 2 other warning signs we've identified.

You can also see our analysis of Pyxis Tankers' Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.