Celebrations may be in order for Redx Pharma Plc (LON:REDX) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects.
After the upgrade, the twin analysts covering Redx Pharma are now predicting revenues of UK£19m in 2022. If met, this would reflect a solid 17% improvement in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of UK£15m in 2022. It looks like there's been a clear increase in optimism around Redx Pharma, given the considerable lift to revenue forecasts.
View our latest analysis for Redx Pharma
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. One thing stands out from these estimates, which is that Redx Pharma is forecast to grow faster in the future than it has in the past, with revenues expected to display 17% annualised growth until the end of 2022. If achieved, this would be a much better result than the 17% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 6.8% per year. Not only are Redx Pharma's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.
The Bottom Line
The highlight for us was that analysts increased their revenue forecasts for Redx Pharma this year. They're also forecasting more rapid revenue growth than the wider market. With a serious upgrade to expectations, it might be time to take another look at Redx Pharma.
These earnings upgrades look like a sterling endorsement, but before diving in - you should know that we've spotted 3 potential warning signs with Redx Pharma, including dilutive stock issuance over the past year. For more information, you can click through to our platform to learn more about this and the 2 other warning signs we've identified .
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. 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.
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