Analysts Are Betting On Quarterhill Inc. (TSE:QTRH) With A Big Upgrade This Week
Celebrations may be in order for Quarterhill Inc. (TSE:QTRH) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The analysts have sharply increased their revenue numbers, with a view that Quarterhill will make substantially more sales than they'd previously expected. It will be interesting to see if the latest numbers are enough to change investors' appetite for Quarterhill. Shares are down 5.3% to CA$2.14 in the last 7 days.
Following the upgrade, the latest consensus from Quarterhill's five analysts is for revenues of CA$361m in 2022, which would reflect a major 187% improvement in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of CA$319m in 2022. It looks like there's been a clear increase in optimism around Quarterhill, given the nice increase in revenue forecasts.
View our latest analysis for Quarterhill
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. One thing stands out from these estimates, which is that Quarterhill is forecast to grow faster in the future than it has in the past, with revenues expected to display 3x annualised growth until the end of 2022. If achieved, this would be a much better result than the 0.1% 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 16% per year. So it looks like Quarterhill is expected to grow faster than its competitors, at least for a while.
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 more rapid revenue growth than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Quarterhill.
It's great to see the analysts upgrading their estimates, but the biggest highlight to us is that the business is expected to become profitable in the foreseeable future. You can learn more about these forecasts, 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.
