New Forecasts: Here's What Analysts Think The Future Holds For SilverBow Resources, Inc. (NYSE:SBOW)
SilverBow Resources, Inc. (NYSE:SBOW) shareholders will have a reason to smile today, with the covering analyst making substantial upgrades to this year's statutory forecasts. The consensus statutory numbers for both revenue and earnings per share (EPS) increased, with their view clearly much more bullish on the company's business prospects. SilverBow Resources has also found favour with investors, with the stock up a remarkable 17% to US$9.09 over the past week. Could this upgrade be enough to drive the stock even higher?
After this upgrade, SilverBow Resources' one analyst is now forecasting revenues of US$270m in 2021. This would be a sizeable 52% improvement in sales compared to the last 12 months. The losses are expected to disappear over the next year or so, with forecasts for a profit of US$5.64 per share this year. Prior to this update, the analyst had been forecasting revenues of US$241m and earnings per share (EPS) of US$4.48 in 2021. There has definitely been an improvement in perception recently, with the analyst substantially increasing both their earnings and revenue estimates.
Check out our latest analysis for SilverBow Resources
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analyst is definitely expecting SilverBow Resources' growth to accelerate, with the forecast 52% annualised growth to the end of 2021 ranking favourably alongside historical growth of 5.7% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 9.2% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analyst also expect SilverBow Resources to grow faster than the wider industry.
The Bottom Line
The most important thing to take away from this upgrade is that the analyst 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 SilverBow Resources.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for SilverBow Resources going out as far as 2022, 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.
This article by Simply Wall St is general in nature. 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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