Bearish: Analysts Just Cut Their Clever Leaves Holdings Inc. (NASDAQ:CLVR) Revenue and EPS estimates
The analysts covering Clever Leaves Holdings Inc. (NASDAQ:CLVR) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for next 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 the downgrade, the latest consensus from Clever Leaves Holdings' three analysts is for revenues of US$35m in 2023, which would reflect a huge 100% improvement in sales compared to the last 12 months. Losses are predicted to fall substantially, shrinking 50% to US$0.71. Yet before this consensus update, the analysts had been forecasting revenues of US$41m and losses of US$0.54 per share in 2023. So there's been quite a change-up of views after the recent consensus updates, with the analysts making a serious cut to their revenue forecasts while also expecting losses per share to increase.
View our latest analysis for Clever Leaves Holdings
The consensus price target fell 11% to US$2.58, implicitly signalling that lower earnings per share are a leading indicator for Clever Leaves Holdings' valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Clever Leaves Holdings, with the most bullish analyst valuing it at US$3.75 and the most bearish at US$1.40 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
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. The analysts are definitely expecting Clever Leaves Holdings' growth to accelerate, with the forecast 74% annualised growth to the end of 2023 ranking favourably alongside historical growth of 25% per annum over the past three years. Compare this with other companies in the same industry, which are forecast to grow their revenue 3.8% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Clever Leaves Holdings is expected to grow much faster than its industry.
The Bottom Line
The most important thing to take away is that analysts increased their loss per share estimates for next year. Unfortunately, analysts also downgraded their revenue estimates, although our data indicates revenues are expected to perform better than the wider market. After such a stark change in sentiment from analysts, we'd understand if readers now felt a bit wary of Clever Leaves Holdings.
There might be good reason for analyst bearishness towards Clever Leaves Holdings, like major dilution from new stock issuance in the past year. For more information, you can click here to discover this and the 2 other risks we've identified.
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.
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