Broker Revenue Forecasts For PHX Minerals Inc. (NYSE:PHX) Are Surging Higher
Celebrations may be in order for PHX Minerals Inc. (NYSE:PHX) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects.
Following the latest upgrade, the four analysts covering PHX Minerals provided consensus estimates of US$47m revenue in 2023, which would reflect a concerning 30% decline on its sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of US$42m in 2023. The consensus has definitely become more optimistic, showing a nice increase in revenue forecasts.
View our latest analysis for PHX Minerals
Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 38% by the end of 2023. This indicates a significant reduction from annual growth of 3.3% over the last five years. Yet aggregate analyst estimates for other companies in the industry suggest that industry revenues are forecast to decline 3.6% per year. The forecasts do look bearish for PHX Minerals, since they're expecting it to shrink faster than the industry.
The Bottom Line
The highlight for us was that analysts increased their revenue forecasts for PHX Minerals this year. Analysts also expect revenues to shrink faster 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 PHX Minerals.
Analysts are definitely bullish on PHX Minerals, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including concerns around earnings quality. You can learn more, and discover the 2 other concerns 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.
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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.
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