Yahoo Finance News Flash: One Analyst Just Made A Notable Upgrade To Their Delta Apparel, Inc. (NYSEMKT:DLA) Forecasts
Delta Apparel, Inc. (NYSEMKT:DLA) shareholders will have a reason to smile today, with the covering analyst making substantial upgrades to this year's forecasts. The revenue forecast for this year has experienced a facelift, with the analyst now much more optimistic on its sales pipeline.
Following the latest upgrade, the current consensus, from the one analyst covering Delta Apparel, is for revenues of US$358m in 2020, which would reflect an uneasy 15% reduction in Delta Apparel's sales over the past 12 months. Before the latest update, the analyst was foreseeing US$322m of revenue in 2020. It looks like there's been a clear increase in optimism around Delta Apparel, given the substantial gain in revenue forecasts.
See our latest analysis for Delta Apparel
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. Over the past five years, revenues have declined around 1.7% annually. Worse, forecasts are essentially predicting the decline to accelerate, with the estimate for a 15% decline in revenue next year. Compare this against analyst estimates for companies in the wider industry, which suggest that revenues (in aggregate) are expected to grow 8.7% next year. So it's pretty clear that, while it does have declining revenues, the analyst also expect Delta Apparel to suffer worse than the wider industry.
The Bottom Line
The most important thing to take away from this upgrade is that the analyst lifted their revenue estimates for this year. They're also anticipating slower revenue growth than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Delta Apparel.
Of course, this isn't the full story. One Delta Apparel broker/analyst has provided estimates out to 2021, which can be seen 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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