Brokers Are Upgrading Their Views On Profire Energy, Inc. (NASDAQ:PFIE) With These New Forecasts
Profire Energy, Inc. (NASDAQ:PFIE) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The analysts greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals. The stock price has risen 7.5% to US$1.41 over the past week, suggesting investors are becoming more optimistic. Could this big upgrade push the stock even higher?
After this upgrade, Profire Energy's three analysts are now forecasting revenues of US$34m in 2022. This would be a notable 10% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to surge 522% to US$0.023. Prior to this update, the analysts had been forecasting revenues of US$30m and earnings per share (EPS) of US$0.01 in 2022. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.
Check out our latest analysis for Profire Energy
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 Profire Energy is forecast to grow faster in the future than it has in the past, with revenues expected to display 14% annualised growth until the end of 2022. If achieved, this would be a much better result than the 9.0% 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 9.6% per year. So it looks like Profire Energy 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 upgraded their earnings per share estimates for this year, expecting improving business conditions. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. With a serious upgrade to expectations, it might be time to take another look at Profire Energy.
Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At Simply Wall St, we have a full range of analyst estimates for Profire Energy going out to 2024, and you can see them 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.
