The latest analyst coverage could presage a bad day for Lucid Group, Inc. (NASDAQ:LCID), 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 the analysts signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well.
After the downgrade, the six analysts covering Lucid Group are now predicting revenues of US$740m in 2022. If met, this would reflect a huge 308% improvement in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing US$945m of revenue in 2022. The consensus view seems to have become more pessimistic on Lucid Group, noting the sizeable cut to revenue estimates in this update.
Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Lucid Group's revenue growth is expected to slow, with the forecast 16x annualised growth rate until the end of 2022 being well below the historical 3,977% growth over the last year. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 22% per year. So it's pretty clear that, while Lucid Group's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.
The Bottom Line
The most important thing to take away is that analysts cut their revenue estimates for this year. They're also forecasting more rapid revenue growth than the wider market. Overall, given the drastic downgrade to this year's forecasts, we'd be feeling a little more wary of Lucid Group going forwards.
Looking for more information? At least one of Lucid Group's six analysts has provided estimates out to 2024, which can be seen for free on our platform here.
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.
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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.
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