What You Need To Know About The Streamline Health Solutions, Inc. (NASDAQ:STRM) Analyst Downgrade Today
One thing we could say about the analysts on Streamline Health Solutions, Inc. (NASDAQ:STRM) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative. Investors however, have been notably more optimistic about Streamline Health Solutions recently, with the stock price up a worthy 27% to US$0.40 in the past week. Whether the downgrade will have a negative impact on demand for shares is yet to be seen.
Following the latest downgrade, the dual analysts covering Streamline Health Solutions provided consensus estimates of US$22m revenue in 2025, which would reflect an uneasy 8.8% decline on its sales over the past 12 months. The loss per share is anticipated to greatly reduce in the near future, narrowing 66% to US$0.12. Yet before this consensus update, the analysts had been forecasting revenues of US$28m and losses of US$0.12 per share in 2025. So there's definitely been a change in sentiment in this update, with the analysts administering a substantial haircut to next year's revenue estimates, while at the same time holding losses per share steady.
View our latest analysis for Streamline Health Solutions
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Streamline Health 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 7.1% by the end of 2025. This indicates a significant reduction from annual growth of 8.7% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 10% per year. It's pretty clear that Streamline Health Solutions' revenues are expected to perform substantially worse than the wider industry.
The Bottom Line
Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that Streamline Health Solutions' revenues are expected to grow slower than the wider market. Overall, given the drastic downgrade to next year's forecasts, we'd be feeling a little more wary of Streamline Health Solutions going forwards.
As you can see, the analysts clearly aren't bullish, and there might be good reason for that. We've identified some potential issues with Streamline Health Solutions' financials, such as a short cash runway. Learn more, and discover the 2 other concerns we've identified, for 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.
