This Analyst Just Downgraded Their Vislink Technologies, Inc. (NASDAQ:VISL) EPS Forecasts

Today is shaping up negative for Vislink Technologies, Inc. (NASDAQ:VISL) shareholders, with the covering analyst delivering a substantial negative revision to next year's forecasts. Both revenue and earnings per share (EPS) estimates were cut sharply as the analyst factored in the latest outlook for the business, concluding that they were too optimistic previously.

Following the latest downgrade, the current consensus, from the one analyst covering Vislink Technologies, is for revenues of US$30m in 2023, which would reflect a measurable 5.9% reduction in Vislink Technologies' sales over the past 12 months. Losses are predicted to fall substantially, shrinking 60% to US$0.18. Yet before this consensus update, the analyst had been forecasting revenues of US$36m and losses of US$0.11 per share in 2023. So there's been quite a change-up of views after the recent consensus updates, with the analyst making a serious cut to their revenue forecasts while also expecting losses per share to increase.

Check out our latest analysis for Vislink Technologies

The consensus price target fell 29% to US$1.25, implicitly signalling that lower earnings per share are a leading indicator for Vislink Technologies' valuation.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would also point out that the forecast 4.8% annualised revenue decline to the end of 2023 is better than the historical trend, which saw revenues shrink 8.8% annually over the past five years By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 6.3% per year. So it's pretty clear that, while it does have declining revenues, the analyst also expect Vislink Technologies to suffer worse than the wider industry.

The Bottom Line

The most important thing to take away is that the analyst increased their loss per share estimates for next year. Unfortunately the analyst also downgraded their revenue estimates, and industry data suggests that Vislink Technologies' revenues are expected to grow slower than the wider market. With a serious cut to next year's expectations and a falling price target, we wouldn't be surprised if investors were becoming wary of Vislink Technologies.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2024, which can be seen 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here