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The latest analyst coverage could presage a bad day for Quisitive Technology Solutions, Inc. (CVE:QUIS), with the analysts 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.
After this downgrade, Quisitive Technology Solutions' eight analysts are now forecasting revenues of US$132m in 2024. This would be a decent 8.8% improvement in sales compared to the last 12 months. The losses are expected to disappear over the next year or so, with forecasts for a profit of US$0.023 per share this year. Prior to this update, the analysts had been forecasting revenues of US$163m and earnings per share (EPS) of US$0.016 in 2024. So there's been quite a change-up of views after the recent consensus updates, with the analysts making a serious cut to their revenue forecasts while also granting a great increase in to the earnings per share numbers.
View our latest analysis for Quisitive Technology Solutions
The consensus has made no major changes to the price target of CA$0.62, suggesting the forecast improvement in earnings is expected to offset the decline in revenues this year.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Quisitive Technology Solutions' past performance and to peers in the same industry. We would highlight that Quisitive Technology Solutions' revenue growth is expected to slow, with the forecast 8.8% annualised growth rate until the end of 2024 being well below the historical 46% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 18% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Quisitive Technology Solutions.
The Bottom Line
The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for this year. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that Quisitive Technology Solutions' revenues are expected to grow slower than the wider market. Given the stark change in sentiment, we'd understand if investors became more cautious on Quisitive Technology Solutions after today.