Market forces rained on the parade of Synchronoss Technologies, Inc. (NASDAQ:SNCR) shareholders today, when the analysts downgraded their forecasts for next year. There was a fairly draconian cut to their revenue estimates, perhaps an implicit admission that previous forecasts were much too optimistic.
Following the latest downgrade, the current consensus, from the three analysts covering Synchronoss Technologies, is for revenues of US$227m in 2024, which would reflect a noticeable 4.8% reduction in Synchronoss Technologies' sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of US$255m in 2024. It looks like forecasts have become a fair bit less optimistic on Synchronoss Technologies, given the measurable cut to revenue estimates.
View our latest analysis for Synchronoss Technologies
NasdaqCM:SNCR Earnings and Revenue Growth November 9th 2023
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Synchronoss Technologies' past performance and to peers in the same industry. One thing that stands out from these estimates is that shrinking revenues are expected to moderate over the period ending 2024 compared to the historical decline of 6.8% per annum over the past five years. Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 12% annually. So while a broad number of companies are forecast to grow, unfortunately Synchronoss Technologies is expected to see its sales affected worse than other companies in the industry.
The Bottom Line
The most important thing to take away is that analysts cut their revenue estimates for next 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 Synchronoss Technologies after today.
Unsatisfied? We have estimates for Synchronoss Technologies from its three analysts out until 2024, and you can see them 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.