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Analysts Just Slashed Their Fortress Transportation and Infrastructure Investors LLC (NASDAQ:FTAI) Earnings Forecasts

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The analysts covering Fortress Transportation and Infrastructure Investors LLC (NASDAQ:FTAI) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. Revenue and earnings per share (EPS) forecasts were both revised downwards, with the analysts seeing grey clouds on the horizon.

Following the downgrade, the latest consensus from Fortress Transportation and Infrastructure Investors' seven analysts is for revenues of US$722m in 2022, which would reflect a sizeable 40% improvement in sales compared to the last 12 months. The loss per share is anticipated to greatly reduce in the near future, narrowing 63% to US$1.22. Prior to this update, the analysts had been forecasting revenues of US$802m and earnings per share (EPS) of US$0.83 in 2022. So we can see that the consensus has become notably more bearish on Fortress Transportation and Infrastructure Investors' outlook with these numbers, making a substantial drop in this year's revenue estimates. Furthermore, they expect the business to be loss-making this year, compared to their previous forecasts of a profit.

View our latest analysis for Fortress Transportation and Infrastructure Investors

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There was no major change to the consensus price target of US$36.00, signalling that the business is performing roughly in line with expectations, despite lower earnings per share forecasts. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Fortress Transportation and Infrastructure Investors, with the most bullish analyst valuing it at US$50.00 and the most bearish at US$29.00 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

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. It's clear from the latest estimates that Fortress Transportation and Infrastructure Investors' rate of growth is expected to accelerate meaningfully, with the forecast 56% annualised revenue growth to the end of 2022 noticeably faster than its historical growth of 16% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 6.4% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Fortress Transportation and Infrastructure Investors is expected to grow much faster than its industry.

The Bottom Line

The biggest low-light for us was that the forecasts for Fortress Transportation and Infrastructure Investors dropped from profits to a loss this year. Unfortunately, analysts also downgraded their revenue estimates, although our data indicates revenues are expected to perform better than the wider market. The lack of change in the price target is puzzling in light of the downgrade but, with a serious decline expected this year, we wouldn't be surprised if investors were a bit wary of Fortress Transportation and Infrastructure Investors.

That said, the analysts might have good reason to be negative on Fortress Transportation and Infrastructure Investors, given the risk of cutting its dividend. For more information, you can click here to discover this and the 2 other warning signs we've identified.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.