Broker Revenue Forecasts For InPlay Oil Corp. (TSE:IPO) Are Surging Higher

By
Simply Wall St
Published
August 19, 2021
TSX:IPO
Source: Shutterstock

InPlay Oil Corp. (TSE:IPO) shareholders will have a reason to smile today, with the covering analyst making substantial upgrades to this year's forecasts. The analyst has sharply increased their revenue numbers, with a view that InPlay Oil will make substantially more sales than they'd previously expected.

After the upgrade, the one analyst covering InPlay Oil is now predicting revenues of CA$96m in 2021. If met, this would reflect a huge 51% improvement in sales compared to the last 12 months. Before the latest update, the analyst was foreseeing CA$85m of revenue in 2021. It looks like there's been a clear increase in optimism around InPlay Oil, given the nice gain to revenue forecasts.

Check out our latest analysis for InPlay Oil

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TSX:IPO Earnings and Revenue Growth August 20th 2021

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The analyst is definitely expecting InPlay Oil's growth to accelerate, with the forecast 127% annualised growth to the end of 2021 ranking favourably alongside historical growth of 9.6% per annum 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 6.0% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that InPlay Oil is expected to grow much faster than its industry.

The Bottom Line

The highlight for us was that the analyst increased their revenue forecasts for InPlay Oil this year. They're also forecasting more rapid revenue growth than the wider market. Given that the analyst appears to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at InPlay Oil.

These earnings upgrades look like a sterling endorsement, but before diving in - you should know that we've spotted 5 potential flags with InPlay Oil, including concerns around earnings quality. For more information, you can click through to our platform to learn more about this and the 3 other flags we've identified .

You can also see our analysis of InPlay Oil's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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