Yahoo Finance Broker Revenue Forecasts For DroneShield Limited (ASX:DRO) Are Surging Higher
Shareholders in DroneShield Limited (ASX:DRO) may be thrilled to learn that the covering analyst has just delivered a major upgrade to their near-term forecasts. The revenue forecast for this year has experienced a facelift, with the analyst now much more optimistic on its sales pipeline.
After the upgrade, the solo analyst covering DroneShield is now predicting revenues of AU$97m in 2024. If met, this would reflect a major 77% improvement in sales compared to the last 12 months. Per-share earnings are expected to jump 149% to AU$0.033. Previously, the analyst had been modelling revenues of AU$84m and earnings per share (EPS) of AU$0.031 in 2024. Sentiment certainly seems to have improved in recent times, with a solid increase in revenue and a small increase to earnings per share estimates.
View our latest analysis for DroneShield
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's clear from the latest estimates that DroneShield's rate of growth is expected to accelerate meaningfully, with the forecast 77% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 57% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 6.8% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analyst also expect DroneShield to grow faster than the wider industry.
The Bottom Line
The most important thing to take away from this upgrade is that the analyst upgraded their earnings per share estimates for this year, expecting improving business conditions. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at DroneShield.
The covering analyst is definitely bullish on DroneShield, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including recent substantial insider selling. You can learn more, and discover the 2 other concerns we've identified, 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.
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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.
