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Jerash Holdings (US), Inc. (NASDAQ:JRSH) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The analysts have sharply increased their revenue numbers, with a view that Jerash Holdings (US) will make substantially more sales than they'd previously expected.
After this upgrade, Jerash Holdings (US)'s two analysts are now forecasting revenues of US$119m in 2022. This would be a notable 18% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to leap 39% to US$0.65. Previously, the analysts had been modelling revenues of US$102m and earnings per share (EPS) of US$0.59 in 2022. The most recent forecasts are noticeably more optimistic, with a solid increase in revenue estimates and a lift to earnings per share as well.
It will come as no surprise to learn that the analysts have increased their price target for Jerash Holdings (US) 11% to US$10.00 on the back of these upgrades. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Jerash Holdings (US), with the most bullish analyst valuing it at US$11.00 and the most bearish at US$9.00 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or that the analysts have a clear view on its prospects.
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. The analysts are definitely expecting Jerash Holdings (US)'s growth to accelerate, with the forecast 24% annualised growth to the end of 2022 ranking favourably alongside historical growth of 8.1% per annum over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 8.8% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Jerash Holdings (US) is expected to grow much faster than its industry.
The Bottom Line
The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for this year. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. There was also an increase in the price target, suggesting that there is more optimism baked into the forecasts than there was previously. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Jerash Holdings (US).
These earnings upgrades look like a sterling endorsement, but before diving in - you should know that we've spotted 3 potential risks with Jerash Holdings (US), including concerns around earnings quality. For more information, you can click through to our platform to learn more about this and the 2 other risks we've identified .
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.
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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