Yahoo Finance Profire Energy, Inc. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions
As you might know, Profire Energy, Inc. (NASDAQ:PFIE) just kicked off its latest quarterly results with some very strong numbers. Profire Energy delivered a significant beat to revenue and earnings per share (EPS) expectations, with sales hitting US$15m, some 15% above indicated. Statutory EPS were US$0.05, an impressive 100% ahead of forecasts. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
View our latest analysis for Profire Energy
Taking into account the latest results, the consensus forecast from Profire Energy's twin analysts is for revenues of US$58.0m in 2023, which would reflect a decent 14% improvement in sales compared to the last 12 months. Statutory earnings per share are predicted to leap 20% to US$0.15. Before this earnings report, the analysts had been forecasting revenues of US$53.6m and earnings per share (EPS) of US$0.095 in 2023. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a very substantial lift in earnings per share in particular.
Althoughthe analysts have upgraded their earnings estimates, there was no change to the consensus price target of US$2.25, suggesting that the forecast performance does not have a long term impact on the company's valuation.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Profire Energy's past performance and to peers in the same industry. One thing stands out from these estimates, which is that Profire Energy is forecast to grow faster in the future than it has in the past, with revenues expected to display 19% annualised growth until the end of 2023. If achieved, this would be a much better result than the 5.2% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 8.4% per year. Not only are Profire Energy's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Profire Energy following these results. Happily, they also upgraded their revenue estimates, and are forecasting revenues to grow faster than the wider industry. The consensus price target held steady at US$2.25, with the latest estimates not enough to have an impact on their price targets.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At least one analyst has provided forecasts out to 2025, which can be seen for free on our platform here.
Before you take the next step you should know about the 2 warning signs for Profire Energy (1 can't be ignored!) that we have uncovered.
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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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