Downgrade: Here's How Analysts See Mondee Holdings, Inc. (NASDAQ:MOND) Performing In The Near Term
Today is shaping up negative for Mondee Holdings, Inc. (NASDAQ:MOND) shareholders, with the analysts delivering a substantial negative revision to next year's forecasts. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting the analysts have soured majorly on the business. Surprisingly the share price has been buoyant, rising 13% to US$3.57 in the past 7 days. With such a sharp increase, it seems brokers may have seen something that is not yet being priced in by the wider market.
Following the downgrade, the most recent consensus for Mondee Holdings from its four analysts is for revenues of US$252m in 2024 which, if met, would be a sizeable 29% increase on its sales over the past 12 months. The loss per share is anticipated to greatly reduce in the near future, narrowing 61% to US$0.34. However, before this estimates update, the consensus had been expecting revenues of US$319m and US$0.20 per share in losses. Ergo, there's been a clear change in sentiment, with the analysts administering a notable cut to next year's revenue estimates, while at the same time increasing their loss per share forecasts.
View our latest analysis for Mondee Holdings
The consensus price target fell 40% to US$6.05, with the analysts clearly concerned about the company following the weaker revenue and earnings outlook.
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. We would highlight that Mondee Holdings' revenue growth is expected to slow, with the forecast 22% annualised growth rate until the end of 2024 being well below the historical 35% p.a. growth over the last three years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 11% per year. So it's pretty clear that, while Mondee Holdings' revenue growth is expected to slow, it's still expected to grow faster than the industry itself.
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. With a serious cut to next year's expectations and a falling price target, we wouldn't be surprised if investors were becoming wary of Mondee Holdings.
Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have estimates - from multiple Mondee Holdings analysts - going out to 2025, and you can see them free on our platform here.
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.
