One thing we could say about the analysts on iSun, Inc. (NASDAQ:ISUN) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Both revenue and earnings per share (EPS) estimates were cut sharply as analysts factored in the latest outlook for the business, concluding that they were too optimistic previously.
After this downgrade, iSun's two analysts are now forecasting revenues of US$102m in 2022. This would be a huge 56% improvement in sales compared to the last 12 months. Losses are presumed to reduce, shrinking 11% from last year to US$0.65. Yet prior to the latest estimates, the analysts had been forecasting revenues of US$118m and losses of US$0.44 per share in 2022. 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.
View our latest analysis for iSun
The consensus price target fell 10% to US$6.50, with the analysts clearly concerned about the company following the weaker revenue and earnings outlook.
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. It's clear from the latest estimates that iSun's rate of growth is expected to accelerate meaningfully, with the forecast 144% annualised revenue growth to the end of 2022 noticeably faster than its historical growth of 36% p.a. over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 7.0% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that iSun is expected to grow much faster than its industry.
The Bottom Line
The most important thing to take away is that analysts increased their loss per share estimates for this year. Unfortunately, analysts also downgraded their revenue estimates, although our data indicates revenues are expected to perform better than the wider market. After such a stark change in sentiment from analysts, we'd understand if readers now felt a bit wary of iSun.
There might be good reason for analyst bearishness towards iSun, like a short cash runway. For more information, you can click here to discover this and the 2 other risks 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.