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Celebrations may be in order for Focusrite plc (LON:TUNE) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The revenue forecast for this year has experienced a facelift, with the analysts now much more optimistic on its sales pipeline.
Following the upgrade, the latest consensus from Focusrite's three analysts is for revenues of UK£178m in 2022, which would reflect a reasonable 2.1% improvement in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing UK£160m of revenue in 2022. It looks like there's been a clear increase in optimism around Focusrite, given the solid increase in revenue forecasts.
Check out our latest analysis for Focusrite
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. It's pretty clear that there is an expectation that Focusrite's revenue growth will slow down substantially, with revenues to the end of 2022 expected to display 2.1% growth on an annualised basis. This is compared to a historical growth rate of 25% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 6.7% per year. Factoring in the forecast slowdown in growth, it seems obvious that Focusrite is also expected to grow slower than other industry participants.
The Bottom Line
The highlight for us was that analysts increased their revenue forecasts for Focusrite this year. They're also anticipating slower revenue growth 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 Focusrite.
Looking for more information? At least one of Focusrite's three analysts has provided estimates out to 2024, 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. 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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