One thing we could say about the analysts on Martello Technologies Group Inc. (CVE:MTLO) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. 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 three analysts covering Martello Technologies Group are now predicting revenues of CA$19m in 2021. If met, this would reflect a huge 47% improvement in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of CA$21m in 2021. The forecasts seem less optimistic overall, with the slight decrease in revenue estimates in the latest consensus update.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Martello Technologies Group's past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of Martello Technologies Group'shistorical trends, as next year's 47% revenue growth is roughly in line with 46% annual revenue growth over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 12% per year. So it's pretty clear that Martello Technologies Group is forecast to grow substantially faster than its industry.
The Bottom Line
The clear low-light was that analysts slashing their revenue forecasts for Martello Technologies Group this year. They're also forecasting more rapid revenue growth than the wider market. Often, one downgrade can set off a daisy-chain of cuts, especially if an industry is in decline. So we wouldn't be surprised if the market became a lot more cautious on Martello Technologies Group after today.
Want more information? We have estimates for Martello Technologies Group from its three analysts out until 2023, and you can see them free on our platform here.
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This article by Simply Wall St is general in nature. 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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