Growth Investors: Industry Analysts Just Upgraded Their K3 Capital Group PLC (LON:K3C) Revenue Forecasts By 12%

K3 Capital Group PLC (LON:K3C) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The analysts have sharply increased their revenue numbers, with a view that K3 Capital Group will make substantially more sales than they'd previously expected.

After this upgrade, K3 Capital Group's two analysts are now forecasting revenues of UK£68m in 2022. This would be a solid 12% improvement in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing UK£60m of revenue in 2022. It looks like there's been a clear increase in optimism around K3 Capital Group, given the nice gain to revenue forecasts.

View our latest analysis for K3 Capital Group

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that K3 Capital Group's revenue growth is expected to slow, with the forecast 25% annualised growth rate until the end of 2022 being well below the historical 57% p.a. growth over the last three years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 7.2% per year. So it's pretty clear that, while K3 Capital Group's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most important thing to take away from this upgrade is that analysts lifted their revenue estimates for this year. 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 K3 Capital Group.

These earnings upgrades look like a sterling endorsement, but before diving in - you should know that we've spotted 2 potential flag with K3 Capital Group, including dilutive stock issuance over the past year. 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.