Stride Stapled Group (NZSE:SPG) 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.
Following the latest upgrade, the five analysts covering Stride Stapled Group provided consensus estimates of NZ$63m revenue in 2022, which would reflect a painful 59% decline on its sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of NZ$57m in 2022. The consensus has definitely become more optimistic, showing a decent improvement in revenue forecasts.
View our latest analysis for Stride Stapled Group
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. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 59% by the end of 2022. This indicates a significant reduction from annual growth of 11% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue decline 2.0% annually for the foreseeable future. The forecasts do look bearish for Stride Stapled Group, since they’re expecting it to shrink faster than the 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’re also forecasting for revenues to shrink at a quicker rate than companies in 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 Stride Stapled Group.
Analysts are definitely bullish on Stride Stapled Group, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including dilutive stock issuance over the past year. You can learn more, and discover the 3 other concerns we’ve identified, for 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.
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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