The analysts covering Hurricane Energy plc (LON:HUR) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this 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 current consensus, from the three analysts covering Hurricane Energy, is for revenues of US$171m in 2021, which would reflect a stressful 25% reduction in Hurricane Energy's sales over the past 12 months. Before the latest update, the analysts were foreseeing US$197m of revenue in 2021. The consensus view seems to have become more pessimistic on Hurricane Energy, noting the substantial drop in revenue estimates in this update.

View our latest analysis for Hurricane Energy

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 25% by the end of 2021. This indicates a significant reduction from annual growth of 887% over the last year. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 3.6% per year. It's pretty clear that Hurricane Energy's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to take away is that analysts cut their revenue estimates for 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 Hurricane Energy after today.

Unsatisfied? We have estimates for Hurricane Energy from its three analysts out until 2024, and you can see them free on our platform here.

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This article by Simply Wall St is general in nature. 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.

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