Need To Know: Analysts Are Much More Bullish On World Fuel Services Corporation (NYSE:INT) Revenues
Shareholders in World Fuel Services Corporation (NYSE:INT) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term 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 two analysts covering World Fuel Services are now predicting revenues of US$29b in 2021. If met, this would reflect a sizeable 30% improvement in sales compared to the last 12 months. Statutory earnings per share are supposed to plunge 31% to US$1.26 in the same period. Before this latest update, the analysts had been forecasting revenues of US$26b and earnings per share (EPS) of US$1.27 in 2021. There's clearly been a surge in bullishness around the company's sales pipeline, even if there's no real change in earnings per share forecasts.
See our latest analysis for World Fuel Services
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. One thing stands out from these estimates, which is that World Fuel Services is forecast to grow faster in the future than it has in the past, with revenues expected to display 70% annualised growth until the end of 2021. If achieved, this would be a much better result than the 2.7% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 1.5% per year. So it looks like World Fuel Services is expected to grow faster than its competitors, at least for a while.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with analysts reconfirming that earnings per share are expected to continue performing in line with their prior expectations. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at World Fuel Services.
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 World Fuel Services going out as far as 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.
This article by Simply Wall St is general in nature. 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
