Today is shaping up negative for HeartCore Enterprises, Inc. (NASDAQ:HTCR) shareholders, with the covering analyst delivering a substantial negative revision to this year's forecasts. Revenue and earnings per share (EPS) forecasts were both revised downwards, with the analyst seeing grey clouds on the horizon.

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After the downgrade, the consensus from HeartCore Enterprises' solitary analyst is for revenues of US$18m in 2025, which would reflect a stressful 40% decline in sales compared to the last year of performance. Losses are predicted to fall substantially, shrinking 85% to US$0.01 per share. Previously, the analyst had been modelling revenues of US$24m and earnings per share (EPS) of US$0.16 in 2025. There looks to have been a major change in sentiment regarding HeartCore Enterprises' prospects, with a sizeable cut to revenues and the analyst now forecasting a loss instead of a profit.

View our latest analysis for HeartCore Enterprises

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. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 40% by the end of 2025. This indicates a significant reduction from annual growth of 28% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 12% annually for the foreseeable future. It's pretty clear that HeartCore Enterprises' revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The biggest low-light for us was that the forecasts for HeartCore Enterprises dropped from profits to a loss this year. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. We wouldn't be surprised to find shareholders feeling a bit shell-shocked, after these downgrades. It looks like the analyst has become a lot more bearish on HeartCore Enterprises, and their negativity could be grounds for caution.

So things certainly aren't looking great, and you should also know that we've spotted some potential warning signs with HeartCore Enterprises, including the risk of cutting its dividend. For more information, you can click here to discover this and the 2 other concerns we've identified.

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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.