One Star Equity Holdings, Inc. (NASDAQ:STRR) Analyst Has Been Cutting Their Forecasts
Today is shaping up negative for Star Equity Holdings, Inc. (NASDAQ:STRR) shareholders, with the covering analyst delivering a substantial negative revision to next year's forecasts. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.
Following the downgrade, the consensus from solo analyst covering Star Equity Holdings is for revenues of US$56m in 2024, implying a stressful 47% decline in sales compared to the last 12 months. Prior to the latest estimates, the analyst was forecasting revenues of US$85m in 2024. It looks like forecasts have become a fair bit less optimistic on Star Equity Holdings, given the pretty serious reduction to revenue estimates.
Check out our latest analysis for Star Equity Holdings
We'd point out that there was no major changes to their price target of US$5.00, suggesting the latest estimates were not enough to shift their view on the value of the business.
Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 40% by the end of 2024. This indicates a significant reduction from annual growth of 2.7% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 6.9% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Star Equity Holdings is expected to lag the wider industry.
The Bottom Line
The clear low-light was that the analyst slashing their revenue forecasts for Star Equity Holdings next year. They also expect company revenue to perform worse than the wider market. Overall, given the drastic downgrade to next year's forecasts, we'd be feeling a little more wary of Star Equity Holdings going forwards.
Need some more information? We have forecasts for Star Equity Holdings from one covering analyst, 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.
