One thing we could say about the analysts on Seer, Inc. (NASDAQ:SEER) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. 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 current consensus from Seer's three analysts is for revenues of US$20m in 2024 which - if met - would reflect a substantial 21% increase on its sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of US$28m in 2024. It looks like forecasts have become a fair bit less optimistic on Seer, given the sizeable cut to revenue estimates.

See our latest analysis for Seer

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Seer's past performance and to peers in the same industry. We would highlight that Seer's revenue growth is expected to slow, with the forecast 17% annualised growth rate until the end of 2024 being well below the historical 62% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 3.7% annually. So it's pretty clear that, while Seer's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The clear low-light was that analysts slashing their revenue forecasts for Seer next 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 Seer after today.

Of course, there's always more to the story. We have estimates for Seer from its three analysts out until 2025, and you can see them free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies 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.