Revenue Downgrade: Here's What Analysts Forecast For Tremor International Ltd (LON:TRMR)
Market forces rained on the parade of Tremor International Ltd (LON:TRMR) shareholders today, when the analysts downgraded their forecasts for this year. Revenue estimates were cut sharply as the analysts signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well.
After the downgrade, the six analysts covering Tremor International are now predicting revenues of US$418m in 2023. If met, this would reflect a huge 25% improvement in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing US$491m of revenue in 2023. The consensus view seems to have become more pessimistic on Tremor International, noting the substantial drop in revenue estimates in this update.
View our latest analysis for Tremor International
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's clear from the latest estimates that Tremor International's rate of growth is expected to accelerate meaningfully, with the forecast 25% annualised revenue growth to the end of 2023 noticeably faster than its historical growth of 5.6% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.8% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Tremor International is expected to grow much faster than its industry.
The Bottom Line
The clear low-light was that analysts slashing their revenue forecasts for Tremor International this year. They're also forecasting more rapid revenue growth than the wider market. Given the stark change in sentiment, we'd understand if investors became more cautious on Tremor International after today.
Of course, there's always more to the story. We have estimates for Tremor International from its six analysts out until 2024, 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.
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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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