Celebrations may be in order for Wolverine Energy and Infrastructure Inc. (CVE:WEII) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects.
Following the upgrade, the current consensus from Wolverine Energy and Infrastructure's dual analysts is for revenues of CA$443m in 2021 which - if met - would reflect a huge 94% increase on its sales over the past 12 months. Yet prior to the latest estimates, the analysts had been forecasting revenues of CA$250m and losses of CA$0.05 per share in 2021. So we can see there's been a pretty clear increase in analyst sentiment in recent times, with both revenues and earnings per share receiving a decent lift in the latest estimates.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Wolverine Energy and Infrastructure's past performance and to peers in the same industry. We would highlight that Wolverine Energy and Infrastructure's revenue growth is expected to slow, with forecast 94% increase next year well below the historical 187% growth over the last year. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 4.7% next year. So it's pretty clear that, while Wolverine Energy and Infrastructure's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.
The Bottom Line
The most important thing to take away from this upgrade is that the consensus now expects Wolverine Energy and Infrastructure to become profitable this year. They also upgraded their revenue estimates for this year, and sales are expected to grow faster 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 Wolverine Energy and Infrastructure.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2022, which can be seen for free on our platform here.
Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies 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.
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