Yahoo Finance One Co-Diagnostics, Inc. (NASDAQ:CODX) Broker Just Cut Their Revenue Forecasts By 14%
The latest analyst coverage could presage a bad day for Co-Diagnostics, Inc. (NASDAQ:CODX), with the covering analyst making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.
Following the latest downgrade, the single analyst covering Co-Diagnostics provided consensus estimates of US$3.6m revenue in 2023, which would reflect a substantial 70% decline on its sales over the past 12 months. Losses are presumed to reduce, shrinking 13% from last year to US$0.90. Yet prior to the latest estimates, the analyst had been forecasting revenues of US$4.2m and losses of US$0.87 per share in 2023. Ergo, there's been a clear change in sentiment, with the analyst 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 Co-Diagnostics
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 80% by the end of 2023. This indicates a significant reduction from annual growth of 46% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 8.3% per year. It's pretty clear that Co-Diagnostics' revenues are expected to perform substantially worse 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 Co-Diagnostics. Unfortunately the analyst also downgraded their revenue estimates, and industry data suggests that Co-Diagnostics' revenues are expected to grow slower 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 Co-Diagnostics after today.
Still, the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for Co-Diagnostics going out as far as 2024, 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.
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.
Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here
