Celebrations may be in order for Van Elle Holdings plc (LON:VANL) 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 analysts now much more optimistic on its sales pipeline. The market may be pricing in some blue sky too, with the share price gaining 14% to UK£0.46 in the last 7 days. Could this upgrade be enough to drive the stock even higher?
Following the upgrade, the current consensus from Van Elle Holdings' dual analysts is for revenues of UK£146m in 2023 which - if met - would reflect a notable 17% increase on its sales over the past 12 months. Statutory earnings per share are presumed to soar 132% to UK£0.041. Previously, the analysts had been modelling revenues of UK£131m and earnings per share (EPS) of UK£0.037 in 2023. The forecasts seem more optimistic now, with a nice increase in revenue and a small increase to earnings per share estimates.
View our latest analysis for Van Elle Holdings
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. It's clear from the latest estimates that Van Elle Holdings' rate of growth is expected to accelerate meaningfully, with the forecast 17% annualised revenue growth to the end of 2023 noticeably faster than its historical growth of 0.4% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 0.08% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Van Elle Holdings is expected to grow much faster than its industry.
The Bottom Line
The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for this year. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better 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 Van Elle Holdings.
Still, the long-term prospects of the business are much more relevant than next year's earnings. At least one analyst has provided forecasts out to 2025, which can be seen 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.