Analysts Just Made A Sizeable Upgrade To Their Bit Digital, Inc. (NASDAQ:BTBT) Forecasts
Bit Digital, Inc. (NASDAQ:BTBT) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with the analysts modelling a real improvement in business performance. Investor sentiment seems to be improving too, with the share price up 8.1% to US$2.39 over the past 7 days. Could this big upgrade push the stock even higher?
After the upgrade, the three analysts covering Bit Digital are now predicting revenues of US$109m in 2024. If met, this would reflect a huge 143% improvement in sales compared to the last 12 months. Losses are predicted to fall substantially, shrinking 67% to US$0.043 per share. Yet prior to the latest estimates, the analysts had been forecasting revenues of US$95m and losses of US$0.21 per share in 2024. So there's been quite a change-up of views after the recent consensus updates, with the analysts making a sizeable increase to their revenue forecasts while also reducing the estimated loss as the business grows towards breakeven.
View our latest analysis for Bit Digital
Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Bit Digital's growth to accelerate, with the forecast 143% annualised growth to the end of 2024 ranking favourably alongside historical growth of 31% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 12% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Bit Digital to grow faster than the wider industry.
The Bottom Line
The highlight for us was that the consensus reduced its estimated losses this year, perhaps suggesting Bit Digital is moving incrementally towards profitability. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. More bullish expectations could be a signal for investors to take a closer look at Bit Digital.
Analysts are definitely bullish on Bit Digital, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including a short cash runway. You can learn more, and discover the 3 other flags we've identified, 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
