Analysts' Revenue Estimates For Bowen Coking Coal Limited (ASX:BCB) Are Surging Higher

Bowen Coking Coal Limited (ASX:BCB) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The revenue forecast for this year has experienced a facelift, with the analysts now much more optimistic on its sales pipeline.

Following the upgrade, the most recent consensus for Bowen Coking Coal from its twin analysts is for revenues of AU$682m in 2024 which, if met, would be a sizeable 225% increase on its sales over the past 12 months. Losses are expected to turn into profits real soon, with the analysts forecasting AU$0.067 in per-share earnings. Previously, the analysts had been modelling revenues of AU$438m and earnings per share (EPS) of AU$0.041 in 2024. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.

Check out our latest analysis for Bowen Coking Coal

Although the analysts have upgraded their earnings estimates, there was no change to the consensus price target of AU$0.34, suggesting that the forecast performance does not have a long term impact on the company's valuation.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Bowen Coking Coal's rate of growth is expected to accelerate meaningfully, with the forecast 225% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 99% 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 2.6% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Bowen Coking Coal to grow faster than the wider industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts upgraded their earnings per share estimates for this year, expecting improving business conditions. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Bowen Coking Coal.

Analysts are definitely bullish on Bowen Coking Coal, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including dilutive stock issuance over the past year. You can learn more, and discover the 2 other warning signs we've identified, for free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks 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.