Growth Investors: Industry Analysts Just Upgraded Their Primis Financial Corp. (NASDAQ:FRST) Revenue Forecasts By 15%
Primis Financial Corp. (NASDAQ:FRST) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects.
After the upgrade, the three analysts covering Primis Financial are now predicting revenues of US$116m in 2022. If met, this would reflect a modest 4.7% improvement in sales compared to the last 12 months. Statutory earnings per share are anticipated to drop 12% to US$1.11 in the same period. Before this latest update, the analysts had been forecasting revenues of US$100m and earnings per share (EPS) of US$1.08 in 2022. Sentiment certainly seems to have improved in recent times, with a nice increase in revenue and a small increase to earnings per share estimates.
See our latest analysis for Primis Financial
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that Primis Financial's revenue growth will slow down substantially, with revenues to the end of 2022 expected to display 4.7% growth on an annualised basis. This is compared to a historical growth rate of 16% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 6.9% per year. Factoring in the forecast slowdown in growth, it seems obvious that Primis Financial is also expected to grow slower than other industry participants.
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. Pleasantly, analysts also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow slower than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Primis Financial.
Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Primis Financial analysts - going out to 2023, 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.
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.
