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SenesTech, Inc. Just Reported And Analysts Have Been Cutting Their Estimates

Simply Wall St
·3 mins read

SenesTech, Inc. (NASDAQ:SNES) just released its latest annual report and things are not looking great. It definitely looks like a negative result overall with revenues falling 11% short of analyst estimates at US$143k. Statutory losses were US$7.69 per share, 56% bigger than what analysts expected. Earnings are an important time for investors, as they can track a company's performance, look at what top analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether analysts have changed their earnings models, following these results.

View our latest analysis for SenesTech

NasdaqCM:SNES Past and Future Earnings, March 18th 2020
NasdaqCM:SNES Past and Future Earnings, March 18th 2020

Taking into account the latest results, the current consensus from SenesTech's one analyst is for revenues of US$650.0k in 2020, which would reflect a huge 355% increase on its sales over the past 12 months. Per-share statutory losses are expected to explode, reaching US$5.36 per share. Before this latest report, the consensus had been expecting revenues of US$750.0k and US$5.34 per share in losses. There's been a definite change in sentiment after these results, with analysts administering a to next year's revenue estimates, while at the same time substantially upgrading EPS. It's almost as though the business is forecast to reduce its focus on growth to enhance profitability.

The average analyst price target fell 75% to US$5.00, with analysts clearly concerned about the weaker revenue outlook and expectation of ongoing losses.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. For example, we noticed that SenesTech's rate of growth is expected to accelerate meaningfully, with revenues forecast to grow at 355%, well above its historical decline of 5.9% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the market are forecast to see their revenue grow 4.9% per year. So it looks like SenesTech is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The most important thing to note from these estimates is that the consensus increased its forecast losses next year, suggesting all may not be well at SenesTech. Unfortunately analysts also downgraded their revenue estimates, although industry data suggests that SenesTech's revenues are expected to grow faster than the wider market. Analysts also downgraded their price target, suggesting that the latest news has led analysts to become more pessimistic about the intrinsic value of the business.

With that in mind, we wouldn't be too quick to come to a conclusion on SenesTech. Long-term earnings power is much more important than next year's profits. We have analyst estimates for SenesTech going out as far as 2021, and you can see them free on our platform here.

We also provide an overview of the SenesTech Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.