Industry Analysts Just Upgraded Their Bowen Coking Coal Limited (ASX:BCB) Revenue Forecasts By 56%
Celebrations may be in order for Bowen Coking Coal Limited (ASX:BCB) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The analysts have sharply increased their revenue numbers, with a view that Bowen Coking Coal will make substantially more sales than they'd previously expected.
Following the upgrade, the most recent consensus for Bowen Coking Coal from its two analysts is for revenues of AU$682m in 2024 which, if met, would be a substantial 225% increase on its sales over the past 12 months. Losses are expected to turn into profits real soon, with the analysts forecasting AU$0.067 in per-share earnings. Previously, the analysts had been modelling revenues of AU$438m and earnings per share (EPS) of AU$0.041 in 2024. 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 Bowen Coking Coal
Although the analysts have upgraded their earnings estimates, there was no change to the consensus price target of AU$0.34, suggesting that the forecast performance does not have a long term impact on the company's valuation.
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. It's clear from the latest estimates that Bowen Coking Coal's rate of growth is expected to accelerate meaningfully, with the forecast 225% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 99% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 2.6% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Bowen Coking Coal is expected to grow much faster than its industry.
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. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Bowen Coking Coal.
Analysts are definitely bullish on Bowen Coking Coal, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including dilutive stock issuance over the past year. For more information, you can click through to our platform to learn more about this and the 2 other flags we've identified .
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.
