The analysts covering Peoples Financial Services Corp. (NASDAQ:PFIS) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. There was a fairly draconian cut to their revenue estimates, perhaps an implicit admission that previous forecasts were much too optimistic.

Following the downgrade, the latest consensus from Peoples Financial Services' two analysts is for revenues of US$123m in 2024, which would reflect a substantial 27% improvement in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing US$140m of revenue in 2024. The consensus view seems to have become more pessimistic on Peoples Financial Services, noting the substantial drop in revenue estimates in this update.

See our latest analysis for Peoples Financial Services

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The analysts are definitely expecting Peoples Financial Services' growth to accelerate, with the forecast 38% annualised growth to the end of 2024 ranking favourably alongside historical growth of 6.1% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.9% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Peoples Financial Services is expected to grow much faster than its industry.

The Bottom Line

The clear low-light was that analysts slashing their revenue forecasts for Peoples Financial Services this year. They're also forecasting more rapid revenue growth than the wider market. Given the stark change in sentiment, we'd understand if investors became more cautious on Peoples Financial Services after today.

Want more information? We have estimates for Peoples Financial Services from its two analysts out until 2025, and you can see them free on our platform here.

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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.