The Consensus EPS Estimates For Pangaea Logistics Solutions, Ltd. (NASDAQ:PANL) Just Fell Dramatically
The latest analyst coverage could presage a bad day for Pangaea Logistics Solutions, Ltd. (NASDAQ:PANL), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting analysts have soured majorly on the business.
After the downgrade, the consensus from Pangaea Logistics Solutions' three analysts is for revenues of US$560m in 2023, which would reflect an uneasy 9.9% decline in sales compared to the last year of performance. Statutory earnings per share are supposed to plunge 40% to US$0.81 in the same period. Before this latest update, the analysts had been forecasting revenues of US$629m and earnings per share (EPS) of US$0.94 in 2023. Indeed, we can see that the analysts are a lot more bearish about Pangaea Logistics Solutions' prospects, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.
View our latest analysis for Pangaea Logistics Solutions
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Pangaea Logistics Solutions' past performance and to peers in the same industry. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 13% by the end of 2023. This indicates a significant reduction from annual growth of 18% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue decline 4.1% annually for the foreseeable future. The forecasts do look bearish for Pangaea Logistics Solutions, since they're expecting it to shrink faster than the industry.
The Bottom Line
The most important thing to take away is that analysts cut their earnings per share estimates, expecting a clear decline in business conditions. Unfortunately they also downgraded their revenue estimates, and our aggregation of analyst estimates suggests that Pangaea Logistics Solutions revenue is expected to perform worse than the wider market. After a cut like that, investors could be forgiven for thinking analysts are a lot more bearish on Pangaea Logistics Solutions, and a few readers might choose to steer clear of the stock.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Pangaea Logistics Solutions going out to 2024, and you can see them free on our platform here.
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.
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