Analysts' Revenue Estimates For Wavestone SA (EPA:WAVE) Are Surging Higher

Celebrations may be in order for Wavestone SA (EPA:WAVE) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The analysts have sharply increased their revenue numbers, with a view that Wavestone will make substantially more sales than they'd previously expected. The market may be pricing in some blue sky too, with the share price gaining 12% to €55.00 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 this upgrade, Wavestone's four analysts are now forecasting revenues of €690m in 2024. This would be a sizeable 21% improvement in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing €618m of revenue in 2024. It looks like there's been a clear increase in optimism around Wavestone, given the substantial gain in revenue forecasts.

Check out our latest analysis for Wavestone

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Wavestone's rate of growth is expected to accelerate meaningfully, with the forecast 46% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 7.7% 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 6.3% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Wavestone to grow faster than the wider industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts lifted their revenue estimates for this year. The analysts also expect revenues to grow faster than the wider market. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Wavestone.

Want more information? We have analyst estimates for Wavestone going out to 2026, and you can see them 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.