Upgrade: Analysts Just Made A Meaningful Increase To Their Etablissements Maurel & Prom S.A. (EPA:MAU) Forecasts

Etablissements Maurel & Prom S.A. (EPA:MAU) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The analysts greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals. The market may be pricing in some blue sky too, with the share price gaining 17% to €3.92 in the last 7 days. We'll be curious to see if these new estimates convince the market to lift the stock price higher still.

After the upgrade, the four analysts covering Etablissements Maurel & Prom are now predicting revenues of US$536m in 2022. If met, this would reflect a reasonable 7.2% improvement in sales compared to the last 12 months. Statutory earnings per share are anticipated to shrink 8.9% to US$0.56 in the same period. Before this latest update, the analysts had been forecasting revenues of US$480m and earnings per share (EPS) of US$0.43 in 2022. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.

Check out our latest analysis for Etablissements Maurel & Prom

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's clear from the latest estimates that Etablissements Maurel & Prom's rate of growth is expected to accelerate meaningfully, with the forecast 7.2% annualised revenue growth to the end of 2022 noticeably faster than its historical growth of 1.7% p.a. 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 0.1% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Etablissements Maurel & Prom 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 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. With a serious upgrade to expectations, it might be time to take another look at Etablissements Maurel & Prom.

Analysts are definitely bullish on Etablissements Maurel & Prom, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including a weak balance sheet. You can learn more, and discover the 3 other warning signs we've identified, for free on our platform here.

You can also see our analysis of Etablissements Maurel & Prom's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.