Yahoo Finance What Does The Future Hold For Ondas Holdings Inc. (NASDAQ:ONDS)? These Analysts Have Been Cutting Their Estimates
One thing we could say about the analysts on Ondas Holdings Inc. (NASDAQ:ONDS) - 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.
Following the downgrade, the most recent consensus for Ondas Holdings from its four analysts is for revenues of US$24m in 2024 which, if met, would be a substantial 74% increase on its sales over the past 12 months. The loss per share is anticipated to greatly reduce in the near future, narrowing 22% to US$0.50. However, before this estimates update, the consensus had been expecting revenues of US$34m and US$0.47 per share in losses. Ergo, there's been a clear change in sentiment, with the analysts administering a notable cut to this year's revenue estimates, while at the same time increasing their loss per share forecasts.
See our latest analysis for Ondas Holdings
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Ondas Holdings' past performance and to peers in the same industry. It's clear from the latest estimates that Ondas Holdings' rate of growth is expected to accelerate meaningfully, with the forecast 109% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 60% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 6.0% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Ondas Holdings to grow faster than the wider industry.
The Bottom Line
The most important thing to note from this downgrade is that the consensus increased its forecast losses this year, suggesting all may not be well at Ondas Holdings. Unfortunately, analysts also downgraded their revenue estimates, although our data indicates revenues are expected to perform better 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 Ondas Holdings after today.
After a downgrade like this, it's pretty clear that previous forecasts were too optimistic. What's more, we've spotted several possible issues with Ondas Holdings' business, like a short cash runway. For more information, you can click here to discover this and the 4 other warning signs we've identified.
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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.
