Analysts' Revenue Estimates For SSE plc (LON:SSE) Are Surging Higher

Celebrations may be in order for SSE plc (LON:SSE) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The revenue forecast for this year has experienced a facelift, with the analysts now much more optimistic on its sales pipeline.

After this upgrade, SSE's 13 analysts are now forecasting revenues of UK£13b in 2025. This would be a decent 12% improvement in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing UK£11b of revenue in 2025. It looks like there's been a clear increase in optimism around SSE, given the decent improvement in revenue forecasts.

View our latest analysis for SSE

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. The analysts are definitely expecting SSE's growth to accelerate, with the forecast 12% annualised growth to the end of 2025 ranking favourably alongside historical growth of 1.6% per annum 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 1.0% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that SSE is expected to grow much faster than its 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 more rapid revenue growth 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 SSE.

Looking for more information? We have analyst estimates for SSE going out to 2027, and you can see them free on our platform here.

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

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.