One thing we could say about the covering analyst on Hudson Global, Inc. (NASDAQ:HSON) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting the analyst has soured majorly on the business.
Following the latest downgrade, Hudson Global's solitary analyst currently expects revenues in 2025 to be US$139m, approximately in line with the last 12 months. The loss per share is anticipated to greatly reduce in the near future, narrowing 90% to US$0.13. Previously, the analyst had been modelling revenues of US$156m and earnings per share (EPS) of US$0.63 in 2025. There looks to have been a major change in sentiment regarding Hudson Global's prospects, with a measurable cut to revenues and the analyst now forecasting a loss instead of a profit.
View our latest analysis for Hudson Global
The consensus price target fell 14% to US$19.00, with the analyst clearly concerned about the company following the weaker revenue and earnings outlook.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that sales are expected to reverse, with a forecast 1.1% annualised revenue decline to the end of 2025. That is a notable change from historical growth of 12% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 6.4% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Hudson Global is expected to lag the wider industry.
The Bottom Line
The most important thing to take away is that the analyst is expecting Hudson Global to become unprofitable this year. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. Given the scope of the downgrades, it would not be a surprise to see the market become more wary of the business.
Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.
Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership.
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