Need To Know: The Consensus Just Cut Its Team, Inc. (NYSE:TISI) Estimates For 2020
Team, Inc. (NYSE: TISI) analysts delivered a dose of negativity to shareholders today by fundamentally revising their legal guidance for this year. This report focused on sales estimates and looks like the business consensus view has become much more conservative.
After the downgrade, the team's four analysts agree for sales of $ 935 million in 2020, which would represent a significant 17% decrease in sales compared to the last year of performance. Before the latest estimates, analysts forecast sales of $ 1.1 billion in 2020. Given the significant drop in sales estimates, the team's forecasts seem a little less optimistic.
Check out our latest team analysis
NYSE: TISI Earnings and Revenue Growth June 25, 2020
In particular, analysts lowered their target price by 22% to $ 11.25, indicating concerns about the team's valuation. The consensus price target is just an average of the individual analyst targets. Therefore, it can be helpful to see how wide the range of underlying estimates is. The most optimistic team analyst has a price target of $ 15.00 per share, while the most pessimistic is $ 9.00. This shows that the estimates are still different, but the analysts don't seem to be completely split across the stock as if it could be a success or failure situation.
Looking at the big picture now, one way we can understand these forecasts is to see how they measure up against both past performance estimates and industry growth estimates. We would like to point out that sales are likely to reverse. The forecast 17% decline in sales is a remarkable change from historical growth of 5.0% over the past five years. Compare this to our data, which suggests that other companies in the same industry are expected to see overall sales growth of 3.9% next year. It's pretty clear that the team's earnings are likely to outperform the industry as a whole.
The bottom line
The clear problem was that analysts have cut their sales forecasts for the team this year. They also expect company sales to underperform the broader market. The consensus price target fell measurably, with analysts appearing not to be reassured by recent business developments, leading to a lower estimate of the team's future valuation. Overall, given the drastic downgrading of this year's forecasts, we would feel a little more cautious if the team went forward.
Unanswered questions? At least one of the team's four analysts has provided estimates for 2021 that can be viewed free of charge on our platform here.
Of course, it can be just as useful for management to invest large sums of money in a stock as to know if analysts are downgrading their estimates. You may also want to search this free list of stocks that insiders buy.
This article from Simply Wall St is general in nature. It is not a recommendation to buy or sell shares and does not take into account your goals or your financial situation. We want to provide you with a long-term, focused analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or quality materials. Simply Wall St has no position in the stocks mentioned.
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