Broker Revenue Forecasts For Caribbean Utilities Company, Ltd. (TSE:CUP.U) Are Surging Higher

Caribbean Utilities Company, Ltd. (TSE:CUP.U) shareholders will have a reason to smile today, with the covering analyst making substantial upgrades to next year's 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 Caribbean Utilities Company's solo analyst is for revenues of US$256m in 2023, which would reflect a satisfactory 4.9% improvement in sales compared to the last 12 months. Per-share earnings are expected to step up 12% to US$0.94. Prior to this update, the analyst had been forecasting revenues of US$231m and earnings per share (EPS) of US$0.88 in 2023. Sentiment certainly seems to have improved in recent times, with a nice gain to revenue and a small lift in earnings per share estimates.

Check out our latest analysis for Caribbean Utilities Company

It will come as no surprise to learn that the analyst has increased their price target for Caribbean Utilities Company 6.3% to CA$21.17 on the back of these upgrades.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We can infer from the latest estimates that forecasts expect a continuation of Caribbean Utilities Company'shistorical trends, as the 3.9% annualised revenue growth to the end of 2023 is roughly in line with the 3.5% annual revenue growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 4.5% annually. It's clear that while Caribbean Utilities Company's revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.

The Bottom Line

The most important thing to take away from this upgrade is that the analyst upgraded their earnings per share estimates for next year, expecting improving business conditions. They also upgraded their revenue forecasts, although the latest estimates suggest that Caribbean Utilities Company will grow in line with the overall market. There was also an increase in the price target, suggesting that there is more optimism baked into the forecasts than there was previously. 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 Caribbean Utilities Company.

Still, the long-term prospects of the business are much more relevant than next year's earnings. At least one analyst has provided forecasts out to 2024, which can be seen 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.