Today is shaping up negative for Jadestone Energy plc (LON:JSE) shareholders, with the analysts delivering a substantial negative revision to this year's forecasts. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.

Following the downgrade, the most recent consensus for Jadestone Energy from its four analysts is for revenues of US$436m in 2024 which, if met, would be a satisfactory 6.9% increase on its sales over the past 12 months. Losses are predicted to fall substantially, shrinking 45% to US$0.063 per share. However, before this estimates update, the consensus had been expecting revenues of US$505m and US$0.063 per share in losses. So there's been quite a change-up of views after the recent consensus updates, with the analysts making a serious cut to their revenue forecasts while also making no real change to the loss per share numbers.

View our latest analysis for Jadestone Energy

There was no real change to the consensus price target of US$0.81, suggesting that the revisions to revenue estimates are not expected to have a long-term impact on Jadestone Energy's valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Jadestone Energy at US$0.99 per share, while the most bearish prices it at US$0.53. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Jadestone Energy shareholders.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting Jadestone Energy's growth to accelerate, with the forecast 14% annualised growth to the end of 2024 ranking favourably alongside historical growth of 7.0% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to see a revenue decline of 1.0% annually. So it's clear with the acceleration in growth, Jadestone Energy is expected to grow meaningfully faster than the wider industry.

The Bottom Line

Sadly they also cut their revenue estimates, although at least the company is expected to perform a bit better than the wider market. Given the stark change in sentiment, we'd understand if investors became more cautious on Jadestone Energy after today.