Analysts' Revenue Estimates For Qube Holdings Limited (ASX:QUB) Are Surging Higher

Qube Holdings Limited (ASX:QUB) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects. The market seems to be pricing in some improvement in the business too, with the stock up 5.8% over the past week, closing at AU$2.94. Whether the upgrade is enough to drive the stock price higher is yet to be seen, however.

After the upgrade, the 15 analysts covering Qube Holdings are now predicting revenues of AU$2.8b in 2023. If met, this would reflect a decent 15% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to soar 51% to AU$0.12. Prior to this update, the analysts had been forecasting revenues of AU$2.6b and earnings per share (EPS) of AU$0.11 in 2023. Sentiment certainly seems to have improved in recent times, with a nice increase in revenue and a small increase to earnings per share estimates.

Check out our latest analysis for Qube Holdings

Although the analysts have upgraded their earnings estimates, there was no change to the consensus price target of AU$3.36, suggesting that the forecast performance does not have a long term impact on the company's valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Qube Holdings at AU$3.88 per share, while the most bearish prices it at AU$2.95. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Qube Holdings is an easy business to forecast or the underlying assumptions are obvious.

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 Qube Holdings' rate of growth is expected to accelerate meaningfully, with the forecast 15% annualised revenue growth to the end of 2023 noticeably faster than its historical growth of 9.5% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 9.3% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Qube Holdings 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 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. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Qube Holdings.

Still, the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Qube Holdings going out to 2025, and you can see them 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.