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Next Science Limited (ASX:NXS) Analysts Just Slashed This Year's Revenue Estimates By 13%

Simply Wall St
·2 min read

One thing we could say about the analysts on Next Science Limited (ASX:NXS) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Revenue estimates were cut sharply as analysts signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well.

Following the downgrade, the current consensus from Next Science's dual analysts is for revenues of US$3.6m in 2020 which - if met - would reflect a sizeable 28% increase on its sales over the past 12 months. Before the latest update, the analysts were foreseeing US$4.1m of revenue in 2020. The consensus view seems to have become more pessimistic on Next Science, noting the measurable cut to revenue estimates in this update.

Check out our latest analysis for Next Science

earnings-and-revenue-growth
earnings-and-revenue-growth

Of course, another way to look at these forecasts is to place them into context against the industry itself. For example, we noticed that Next Science's rate of growth is expected to accelerate meaningfully, with revenues forecast to grow 28%, well above its historical decline of 38% a year over the past year. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 14% per year. Not only are Next Science's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.

The Bottom Line

The clear low-light was that analysts slashing their revenue forecasts for Next Science this year. The analysts also expect revenues to grow faster than the wider market. Often, one downgrade can set off a daisy-chain of cuts, especially if an industry is in decline. So we wouldn't be surprised if the market became a lot more cautious on Next Science after today.

Want to learn more? We have estimates for Next Science from its dual analysts out until 2023, 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.

This article by Simply Wall St is general in nature. 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.