Need To Know: Analysts Are Much More Bullish On Cinedigm Corp. (NASDAQ:CIDM)
Celebrations may be in order for Cinedigm Corp. (NASDAQ:CIDM) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The consensus statutory numbers for both revenue and earnings per share (EPS) increased, with their view clearly much more bullish on the company's business prospects.
Following the upgrade, the most recent consensus for Cinedigm from its twin analysts is for revenues of US$65m in 2023 which, if met, would be a notable 11% increase on its sales over the past 12 months. Losses are forecast to hold steady at around US$0.085. Yet prior to the latest estimates, the analysts had been forecasting revenues of US$58m and losses of US$0.10 per share in 2023. We can see there's definitely been a change in sentiment in this update, with the analysts administering a sizeable upgrade to this year's revenue estimates, while at the same time reducing their loss estimates.
View our latest analysis for Cinedigm
Of course, another way to look at these forecasts is to place them into context against the industry itself. For example, we noticed that Cinedigm's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 24% growth to the end of 2023 on an annualised basis. That is well above its historical decline of 9.4% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 9.0% per year. So it looks like Cinedigm is expected to grow faster than its competitors, at least for a while.
The Bottom Line
The highlight for us was that the consensus reduced its estimated losses this year, perhaps suggesting Cinedigm is moving incrementally towards profitability. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. More bullish expectations could be a signal for investors to take a closer look at Cinedigm.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Cinedigm going out as far as 2024, 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.
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