Yahoo Finance Industry Analysts Just Upgraded Their Gibson Energy Inc. (TSE:GEI) Revenue Forecasts By 63%
Shareholders in Gibson Energy Inc. (TSE:GEI) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The analysts have sharply increased their revenue numbers, with a view that Gibson Energy will make substantially more sales than they'd previously expected.
Following the upgrade, the consensus from nine analysts covering Gibson Energy is for revenues of CA$11b in 2024, implying a perceptible 5.3% decline in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing CA$6.9b of revenue in 2024. The consensus has definitely become more optimistic, showing a sizeable gain to revenue forecasts.
Check out our latest analysis for Gibson Energy
Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 7.0% by the end of 2024. This indicates a significant reduction from annual growth of 14% 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 5.5% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Gibson Energy is expected to lag the wider industry.
The Bottom Line
The most important thing to take away from this upgrade is that analysts lifted their revenue estimates for this year. They also expect company revenue to perform worse than the wider market. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Gibson Energy.
Analysts are clearly in love with Gibson Energy at the moment, but before diving in - you should be aware that we've identified some warning flags with the business, such as dilutive stock issuance over the past year. You can learn more, and discover the 4 other risks 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.
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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.
