Analysts Just Made A Major Revision To Their Imperial Oil Limited (TSE:IMO) Revenue Forecasts

The latest analyst coverage could presage a bad day for Imperial Oil Limited (TSE:IMO), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. There was a fairly draconian cut to their revenue estimates, perhaps an implicit admission that previous forecasts were much too optimistic.

Following the latest downgrade, Imperial Oil's six analysts currently expect revenues in 2024 to be CA$51b, approximately in line with the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of CA$63b in 2024. It looks like forecasts have become a fair bit less optimistic on Imperial Oil, given the measurable cut to revenue estimates.

See our latest analysis for Imperial Oil

There was no particular change to the consensus price target of CA$98.07, with Imperial Oil's latest outlook seemingly not enough to result in a change of valuation.

Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 0.5% by the end of 2024. This indicates a significant reduction from annual growth of 15% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 4.0% annually for the foreseeable future. It's pretty clear that Imperial Oil's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The clear low-light was that analysts slashing their revenue forecasts for Imperial Oil this year. They're also anticipating slower revenue growth than the wider market. Given the stark change in sentiment, we'd understand if investors became more cautious on Imperial Oil after today.

Looking for more information? At least one of Imperial Oil's six analysts has provided estimates out to 2026, which can be seen 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 downgrading 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.