The latest analyst coverage could presage a bad day for Pyxis Tankers Inc. (NASDAQ:PXS), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting analysts have soured majorly on the business.
Following this downgrade, Pyxis Tankers' twin analysts are forecasting 2024 revenues to be US$51m, approximately in line with the last 12 months. Statutory earnings per share are anticipated to plummet 54% to US$1.46 in the same period. Before this latest update, the analysts had been forecasting revenues of US$56m and earnings per share (EPS) of US$1.63 in 2024. It looks like analyst sentiment has declined substantially, with a measurable cut to revenue estimates and a real cut to earnings per share numbers as well.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Pyxis Tankers' revenue growth is expected to slow, with the forecast 2.6% annualised growth rate until the end of 2024 being well below the historical 19% p.a. growth over the last five years. Compare this with other companies in the same industry, which are forecast to see a revenue decline of 0.2% annually. Factoring in the forecast slowdown in growth, it's pretty clear that Pyxis Tankers is still expected to grow faster than the wider industry.
The Bottom Line
The biggest issue in the new estimates is that analysts have reduced their earnings per share estimates, suggesting business headwinds lay ahead for Pyxis Tankers. Sadly they also cut their revenue estimates, although at least the company is expected to perform a bit better than the wider market. We wouldn't be surprised to find shareholders feeling a bit shell-shocked, after these downgrades. It looks like analysts have become a lot more bearish on Pyxis Tankers, and their negativity could be grounds for caution.
As you can see, the analysts clearly aren't bullish, and there might be good reason for that. We've identified some potential issues with Pyxis Tankers' financials, such as concerns around earnings quality. For more information, you can click here to discover this and the 2 other risks we've identified.
We also provide an overview of the Pyxis Tankers Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.
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.