Yahoo Finance Industry Analysts Just Upgraded Their 3i Group plc (LON:III) Revenue Forecasts By 11%
Celebrations may be in order for 3i Group plc (LON:III) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The analysts have sharply increased their revenue numbers, with a view that 3i Group will make substantially more sales than they'd previously expected.
Following the latest upgrade, the five analysts covering 3i Group provided consensus estimates of UK£3.8b revenue in 2024, which would reflect a not inconsiderable 20% decline on its sales over the past 12 months. Before the latest update, the analysts were foreseeing UK£3.4b of revenue in 2024. The consensus has definitely become more optimistic, showing a nice increase in revenue forecasts.
See our latest analysis for 3i Group
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. We would highlight that sales are expected to reverse, with a forecast 20% annualised revenue decline to the end of 2024. That is a notable change from historical growth of 31% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 11% per year. It's pretty clear that 3i Group's revenues are expected to perform substantially worse than the wider industry.
The Bottom Line
The most important thing to take away from this upgrade is that analysts lifted their revenue estimates for this year. They also expect company revenue to perform worse than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at 3i Group.
Analysts are clearly in love with 3i Group at the moment, but before diving in - you should be aware that we've identified some warning flags with the business, such as concerns around earnings quality. You can learn more, and discover the 1 other warning sign 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.
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