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Revenue Downgrade: Here's What Analysts Forecast For Spruce Biosciences, Inc. (NASDAQ:SPRB)

The latest analyst coverage could presage a bad day for Spruce Biosciences, Inc. (NASDAQ:SPRB), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Revenue estimates were cut sharply as analysts signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well.

Following the latest downgrade, the seven analysts covering Spruce Biosciences provided consensus estimates of US$4.6m revenue in 2024, which would reflect a stressful 54% decline on its sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of US$5.3m in 2024. The consensus view seems to have become more pessimistic on Spruce Biosciences, noting the substantial drop in revenue estimates in this update.

View our latest analysis for Spruce Biosciences

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earnings-and-revenue-growth

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. We would highlight that sales are expected to reverse, with a forecast 54% annualised revenue decline to the end of 2024. That is a notable change from historical growth of 103% 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 17% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Spruce Biosciences is expected to lag the wider industry.

The Bottom Line

The clear low-light was that analysts slashing their revenue forecasts for Spruce Biosciences this year. They also expect company revenue to perform worse than the wider market. Given the stark change in sentiment, we'd understand if investors became more cautious on Spruce Biosciences after today.

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As you can see, the analysts clearly aren't bullish, and there might be good reason for that. We've identified some potential issues with Spruce Biosciences' financials, such as dilutive stock issuance over the past year. For more information, you can click here to discover this and the 3 other flags we've identified.

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.