Analysts' Revenue Estimates For Pason Systems Inc. (TSE:PSI) Are Surging Higher

Shareholders in Pason Systems Inc. (TSE:PSI) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects.

Following the upgrade, the latest consensus from Pason Systems' six analysts is for revenues of CA$422m in 2024, which would reflect a solid 14% improvement in sales compared to the last 12 months. Statutory earnings per share are anticipated to reduce 9.7% to CA$1.42 in the same period. Previously, the analysts had been modelling revenues of CA$376m and earnings per share (EPS) of CA$1.38 in 2024. The forecasts seem more optimistic now, with a nice increase in revenue and a slight bump in earnings per share estimates.

See our latest analysis for Pason Systems

It will come as no surprise to learn that the analysts have increased their price target for Pason Systems 6.1% to CA$18.57 on the back of these upgrades.

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 analysts are definitely expecting Pason Systems' growth to accelerate, with the forecast 11% annualised growth to the end of 2024 ranking favourably alongside historical growth of 2.6% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to see a revenue decline of 14% annually. It seems obvious that as part of the brighter growth outlook, Pason Systems is expected 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 next year, expecting improving business conditions. Fortunately, they also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. There was also a nice increase in the price target, with analysts apparently feeling that the intrinsic value of the business is improving. Seeing the dramatic upgrade to next year's forecasts, it might be time to take another look at Pason Systems.

These earnings upgrades look like a sterling endorsement, but before diving in - you should know that we've spotted 2 potential flag with Pason Systems, including concerns around earnings quality. You can learn more, and discover the 1 other flag we've identified, for free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies 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.