Industry Analysts Just Made A Notable Upgrade To Their Harworth Group plc (LON:HWG) Revenue Forecasts

Harworth Group plc (LON:HWG) 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 Harworth Group will make substantially more sales than they'd previously expected. The stock price has risen 4.2% to UK£1.25 over the past week, suggesting investors are becoming more optimistic. It will be interesting to see if this latest upgrade is enough to kickstart further buying interest in the stock.

Following the latest upgrade, the dual analysts covering Harworth Group provided consensus estimates of UK£102m revenue in 2023, which would reflect a concerning 39% decline on its sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of UK£79m in 2023. The consensus has definitely become more optimistic, showing a great increase in revenue forecasts.

Check out our latest analysis for Harworth Group

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. We would highlight that sales are expected to reverse, with a forecast 39% annualised revenue decline to the end of 2023. That is a notable change from historical growth of 18% over the last five years. Yet aggregate analyst estimates for other companies in the industry suggest that industry revenues are forecast to decline 7.2% per year. The forecasts do look bearish for Harworth Group, since they're expecting it to shrink faster than the industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts lifted their revenue estimates for this year. They're also forecasting for revenues to shrink at a quicker rate than companies in 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 Harworth Group.

Looking for more information? At least one of Harworth Group's dual analysts has provided estimates out to 2025, which can be seen for free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks 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.