Broker Revenue Forecasts For Robert Walters plc (LON:RWA) Are Surging Higher

By
Simply Wall St
Published
March 10, 2022
LSE:RWA
Source: Shutterstock

Celebrations may be in order for Robert Walters plc (LON:RWA) 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 Robert Walters will make substantially more sales than they'd previously expected.

After this upgrade, Robert Walters' four analysts are now forecasting revenues of UK£1.3b in 2022. This would be a major 31% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to accumulate 8.8% to UK£0.50. Prior to this update, the analysts had been forecasting revenues of UK£1.2b and earnings per share (EPS) of UK£0.50 in 2022. There's clearly been a surge in bullishness around the company's sales pipeline, even if there's no real change in earnings per share forecasts.

Check out our latest analysis for Robert Walters

earnings-and-revenue-growth
LSE:RWA Earnings and Revenue Growth March 10th 2022

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Robert Walters' past performance and to peers in the same industry. For example, we noticed that Robert Walters' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 31% growth to the end of 2022 on an annualised basis. That is well above its historical decline of 3.6% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 7.2% per year. So it looks like Robert Walters is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with analysts reconfirming that earnings per share are expected to continue performing in line with their prior expectations. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better 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 Robert Walters.

Analysts are clearly in love with Robert Walters at the moment, but before diving in - you should be aware that we've identified some warning flags with the business, such as concerns around earnings quality. For more information, you can click through to our platform to learn more about this and the 2 other warning signs we've identified .

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.

Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.

Make Confident Investment Decisions

Simply Wall St's Editorial Team provides unbiased, factual reporting on global stocks using in-depth fundamental analysis.
Find out more about our editorial guidelines and team.