Yahoo Finance Growth Investors: Industry Analysts Just Upgraded Their Superior Plus Corp. (TSE:SPB) Revenue Forecasts By 15%
Celebrations may be in order for Superior Plus Corp. (TSE:SPB) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The analysts have sharply increased their revenue numbers, with a view that Superior Plus will make substantially more sales than they'd previously expected. The market seems to be pricing in some improvement in the business too, with the stock up 4.8% over the past week, closing at CA$12.10. It will be interesting to see if this latest upgrade is enough to kickstart further buying interest in the stock.
After this upgrade, Superior Plus' seven analysts are now forecasting revenues of CA$2.8b in 2022. This would be a solid 16% improvement in sales compared to the last 12 months. The losses are expected to disappear over the next year or so, with forecasts for a profit of CA$0.60 per share this year. Prior to this update, the analysts had been forecasting revenues of CA$2.4b and earnings per share (EPS) of CA$0.57 in 2022. The most recent forecasts are noticeably more optimistic, with a nice increase in revenue estimates and a lift to earnings per share as well.
Check out our latest analysis for Superior Plus
Despite these upgrades, the analysts have not made any major changes to their price target of CA$13.83, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Superior Plus at CA$15.50 per share, while the most bearish prices it at CA$12.50. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Superior Plus is an easy business to forecast or the underlying assumptions are obvious.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The analysts are definitely expecting Superior Plus' growth to accelerate, with the forecast 22% annualised growth to the end of 2022 ranking favourably alongside historical growth of 0.7% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 3.2% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Superior Plus to grow faster than the wider 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 this year. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Superior Plus.
These earnings upgrades look like a sterling endorsement, but before diving in - you should know that we've spotted 3 potential flag with Superior Plus, including dilutive stock issuance over the past year. For more information, you can click through to our platform to learn more about this and the 1 other flag we've identified .
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.
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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.
