Today is shaping up negative for TrueBlue, Inc. (NYSE:TBI) shareholders, with the analysts delivering a substantial negative revision to next year's forecasts. Both revenue and earnings per share (EPS) estimates were cut sharply as analysts factored in the latest outlook for the business, concluding that they were too optimistic previously.

After the downgrade, the consensus from TrueBlue's three analysts is for revenues of US$1.8b in 2024, which would reflect a definite 12% decline in sales compared to the last year of performance. Statutory earnings per share are supposed to plunge 76% to US$0.13 in the same period. Prior to this update, the analysts had been forecasting revenues of US$2.0b and earnings per share (EPS) of US$1.44 in 2024. Indeed, we can see that the analysts are a lot more bearish about TrueBlue's prospects, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.

Check out our latest analysis for TrueBlue

It'll come as no surprise then, to learn that the analysts have cut their price target 17% to US$16.67.

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. Over the past five years, revenues have declined around 3.3% annually. Worse, forecasts are essentially predicting the decline to accelerate, with the estimate for an annualised 9.5% decline in revenue until the end of 2024. Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 6.2% annually. So it's pretty clear that, while it does have declining revenues, the analysts also expect TrueBlue to suffer worse than the wider industry.

The Bottom Line

The most important thing to take away is that analysts cut their earnings per share estimates, expecting a clear decline in business conditions. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. After such a stark change in sentiment from analysts, we'd understand if readers now felt a bit wary of TrueBlue.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have estimates - from multiple TrueBlue analysts - going out to 2024, 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.