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Energy One Limited (ASX:EOL) shareholders will have a reason to smile today, with the covering analyst making substantial upgrades to this year's statutory forecasts. The analyst has sharply increased their revenue numbers, with a view that Energy One will make substantially more sales than they'd previously expected.
Following the upgrade, the current consensus from Energy One's sole analyst is for revenues of AU$33m in 2022 which - if met - would reflect a solid 17% increase on its sales over the past 12 months. Prior to the latest estimates, the analyst was forecasting revenues of AU$30m in 2022. It looks like there's been a clear increase in optimism around Energy One, given the decent improvement in revenue forecasts.
Check out our latest analysis for Energy One
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Energy One's revenue growth is expected to slow, with the forecast 17% annualised growth rate until the end of 2022 being well below the historical 34% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 18% annually. Factoring in the forecast slowdown in growth, it looks like Energy One is forecast to grow at about the same rate as the wider industry.
The Bottom Line
The highlight for us was that the analyst increased their revenue forecasts for Energy One this year. They're also forecasting for revenues to grow at about the same rate as companies in the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Energy One.
Of course, there's always more to the story. One Energy One broker/analyst has provided estimates out to 2023, 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.
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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.