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Celebrations may be in order for Digital Turbine, Inc. (NASDAQ:APPS) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The revenue forecast for next year has experienced a facelift, with analysts now much more optimistic on its sales pipeline.
After this upgrade, Digital Turbine's four analysts are now forecasting revenues of US$486m in 2022. This would be a major 88% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to jump 104% to US$0.90. Before this latest update, the analysts had been forecasting revenues of US$388m and earnings per share (EPS) of US$0.83 in 2022. Sentiment certainly seems to have improved in recent times, with a considerable lift to revenue and a small increase to earnings per share estimates.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Digital Turbine's past performance and to peers in the same industry. The analysts are definitely expecting Digital Turbine's growth to accelerate, with the forecast 66% annualised growth to the end of 2022 ranking favourably alongside historical growth of 30% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 13% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Digital Turbine is expected to grow much faster than its industry.
The Bottom Line
The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for next year. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. Seeing the dramatic upgrade to next year's forecasts, it might be time to take another look at Digital Turbine.
Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have estimates - from multiple Digital Turbine analysts - going out to 2026, 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.
This article by Simply Wall St is general in nature. 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.
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