Just In: One Analyst Has Become A Lot More Bullish On Image Scan Holdings plc's (LON:IGE) Earnings
Image Scan Holdings plc (LON:IGE) shareholders will have a reason to smile today, with the covering analyst making substantial upgrades to this year's forecasts. The analyst greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals.
After this upgrade, Image Scan Holdings' one analyst is now forecasting revenues of UK£3.3m in 2020. This would be a reasonable 2.2% improvement in sales compared to the last 12 months. Losses are supposed to balloon 463% to UK£0.0004 per share. Yet before this consensus update, the analyst had been forecasting revenues of UK£3.0m and losses of UK£0.0012 per share in 2020. We can see there's definitely been a change in sentiment in this update, with the analyst administering a sizeable upgrade to this year's revenue estimates, while at the same time reducing their loss estimates.
See our latest analysis for Image Scan Holdings
Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Image Scan Holdings' revenue growth is expected to slow, with forecast 2.2% increase next year well below the historical 8.2% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 3.4% per year. Factoring in the forecast slowdown in growth, it seems obvious that Image Scan Holdings is also expected to grow slower than other industry participants.
The Bottom Line
The most important thing here is that the analyst reduced their loss per share estimates for this year, reflecting increased optimism around Image Scan Holdings'prospects. Fortunately, they also upgraded their revenue estimates, and are forecasting revenues to grow slower than the wider market. The clear improvement in sentiment should be enough to get most shareholders feeling more optimistic about Image Scan Holdings' future.
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 Image Scan Holdings going out as far as 2020, 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.
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