Yahoo Finance News Flash: Analysts Just Made A Meaningful Upgrade To Their Prudential plc (LON:PRU) Forecasts
Prudential plc (LON:PRU) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The analysts have sharply increased their revenue numbers, with a view that Prudential will make substantially more sales than they'd previously expected.
Following the upgrade, the consensus from 15 analysts covering Prudential is for revenues of US$20b in 2022, implying a sizeable 24% decline in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of US$17b in 2022. The consensus has definitely become more optimistic, showing a solid increase in revenue forecasts.
See our latest analysis for Prudential
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. Over the past five years, revenues have declined around 20% annually. Worse, forecasts are essentially predicting the decline to accelerate, with the estimate for an annualised 24% decline in revenue until the end of 2022. Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 9.5% annually. So while a broad number of companies are forecast to grow, unfortunately Prudential is expected to see its sales affected worse than other companies in the industry.
The Bottom Line
The highlight for us was that analysts increased their revenue forecasts for Prudential this year. They're also anticipating slower revenue growth than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Prudential.
Need some more information? At least one of Prudential's 15 analysts has provided estimates out to 2024, 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.
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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.
