Yahoo Finance Industry Analysts Just Made A Sizeable Upgrade To Their Peyto Exploration & Development Corp. (TSE:PEY) Revenue Forecasts
Peyto Exploration & Development Corp. (TSE:PEY) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects. Investors have been pretty optimistic on Peyto Exploration & Development too, with the stock up 11% to CA$1.98 over the past week. It will be interesting to see if today's upgrade is enough to propel the stock even higher.
Following this upgrade, Peyto Exploration & Development's twin analysts are forecasting 2020 revenues to be CA$420m, approximately in line with the last 12 months. Following this this upgrade, earnings are now expected to tip over into loss-making territory, with the analysts forecasting losses of CA$0.61 per share in 2020. Yet prior to the latest estimates, the analysts had been forecasting revenues of CA$351m and losses of CA$0.62 per share in 2020. So there's been quite a change-up of views after the recent consensus updates, withthe analysts noticeably increasing their revenue forecasts while also expecting losses per share to hold steady.
Check out our latest analysis for Peyto Exploration & Development
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. One thing that stands out from these estimates is that shrinking revenues are expected to moderate from the historical decline of 7.8% per annum over the past five years.
The Bottom Line
The highlight for us was that the consensus reduced its estimated losses this year, perhaps suggesting Peyto Exploration & Development is moving incrementally towards profitability. Fortunately, they also upgraded their revenue estimates, and are forecasting revenues to grow slower than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Peyto Exploration & Development.
Analysts are definitely bullish on Peyto Exploration & Development, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including its declining profit margins. You can learn more, and discover the 4 other concerns we've identified, 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 upgrading their estimates. So you may also wish to search this free list of stocks 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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