Industry Analysts Just Upgraded Their California Resources Corporation (NYSE:CRC) Revenue Forecasts By 12%

California Resources Corporation (NYSE:CRC) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The revenue forecast for this year has experienced a facelift, with analysts now much more optimistic on its sales pipeline.

After the upgrade, the consensus from California Resources' four analysts is for revenues of US$2.8b in 2023, which would reflect a painful 21% decline in sales compared to the last year of performance. Prior to the latest estimates, the analysts were forecasting revenues of US$2.5b in 2023. The consensus has definitely become more optimistic, showing a decent improvement in revenue forecasts.

View our latest analysis for California Resources

earnings-and-revenue-growth

Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 27% by the end of 2023. This indicates a significant reduction from annual growth of 1.8% over the last five years. Yet aggregate analyst estimates for other companies in the industry suggest that industry revenues are forecast to decline 4.7% per year. So it's pretty clear that California Resources' revenues are expected to shrink faster than the wider industry.

The Bottom Line

The highlight for us was that analysts increased their revenue forecasts for California Resources this year. They're also forecasting for revenues to shrink at a quicker rate than companies in the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at California Resources.

Hungry for more information? We have analyst estimates for California Resources going out to 2025, 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.

Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here