Yahoo Finance Upgrade: Analysts Just Made A Captivating Increase To Their Camping World Holdings, Inc. (NYSE:CWH) Forecasts
Camping World Holdings, Inc. (NYSE:CWH) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The analysts greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals. The market may be pricing in some blue sky too, with the share price gaining 20% to US$17.81 in the last 7 days. It will be interesting to see if today's upgrade is enough to propel the stock even higher.
Following the latest upgrade, the ten analysts covering Camping World Holdings provided consensus estimates of US$4.4b revenue in 2020, which would reflect an uneasy 8.6% decline on its sales over the past 12 months. Losses are expected to turn into profits real soon, with the analysts forecasting US$0.11 in per-share earnings. Yet prior to the latest estimates, the analysts had been forecasting revenues of US$4.0b and losses of US$0.08 per share in 2020. So we can see that this has sparked a pretty clear upgrade to expectations, with higher revenues anticipated to lead to profit sooner than previously forecast.
View our latest analysis for Camping World Holdings
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that sales are expected to reverse, with the forecast 8.6% revenue decline a notable change from historical growth of 9.1% over the last three years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 3.4% next year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Camping World Holdings is expected to lag the wider industry.
The Bottom Line
The most important thing to take away from this upgrade is that the consensus now expects Camping World Holdings to become profitable this year. Pleasantly, analysts also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow slower than the wider market. The clear improvement in sentiment should be enough to get most shareholders feeling more optimistic about Camping World Holdings' future.
Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Camping World Holdings analysts - going out to 2021, 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.
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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. Thank you for reading.
