Yahoo Finance Need To Know: Analysts Are Much More Bullish On Restore plc (LON:RST) Revenues
Celebrations may be in order for Restore plc (LON:RST) 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 most recent consensus for Restore from its four analysts is for revenues of UK£223m in 2021 which, if met, would be a substantial 22% increase on its sales over the past 12 months. Before the latest update, the analysts were foreseeing UK£202m of revenue in 2021. It looks like there's been a clear increase in optimism around Restore, given the substantial gain in revenue forecasts.
See our latest analysis for Restore
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's clear from the latest estimates that Restore's rate of growth is expected to accelerate meaningfully, with the forecast 22% annualised revenue growth to the end of 2021 noticeably faster than its historical growth of 13% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 6.5% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Restore is expected to grow much faster than its industry.
The Bottom Line
The most important thing to take away from this upgrade is that analysts lifted their revenue estimates for this year. Analysts also expect revenues 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 Restore.
These earnings upgrades look like a sterling endorsement, but before diving in - you should know that we've spotted 4 potential flags with Restore, including dilutive stock issuance over the past year. You can learn more, and discover the 3 other flags 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.
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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