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Market forces rained on the parade of Charge Enterprises, Inc. (NASDAQ:CRGE) shareholders today, when the analysts downgraded their forecasts for next year. 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 two analysts covering Charge Enterprises provided consensus estimates of US$577m revenue in 2024, which would reflect a considerable 10% decline on its sales over the past 12 months. Before the latest update, the analysts were foreseeing US$727m of revenue in 2024. It looks like forecasts have become a fair bit less optimistic on Charge Enterprises, given the pretty serious reduction to revenue estimates.
Check out our latest analysis for Charge Enterprises
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 8.1% annualised revenue decline to the end of 2024. That is a notable change from historical growth of 49% 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 2.3% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Charge Enterprises is expected to lag the wider industry.
The Bottom Line
The clear low-light was that analysts slashing their revenue forecasts for Charge Enterprises next year. They're also anticipating slower revenue growth than the wider market. Overall, given the drastic downgrade to next year's forecasts, we'd be feeling a little more wary of Charge Enterprises going forwards.
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 Charge Enterprises' financials, such as dilutive stock issuance over the past year. Learn more, and discover the 3 other flags we've identified, for free on our platform here.
Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.
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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.