Analysts' Revenue Estimates For Shell plc (AMS:SHELL) Are Surging Higher

Simply Wall St
February 16, 2022
Source: Shutterstock

Celebrations may be in order for Shell plc (AMS:SHELL) 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 Shell will make substantially more sales than they'd previously expected.

Following the upgrade, the current consensus from Shell's 23 analysts is for revenues of US$309b in 2022 which - if met - would reflect a notable 18% increase on its sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of US$273b in 2022. The consensus has definitely become more optimistic, showing a substantial gain in revenue forecasts.

View our latest analysis for Shell

ENXTAM:SHELL Earnings and Revenue Growth February 16th 2022

Of course, another way to look at these forecasts is to place them into context against the industry itself. For example, we noticed that Shell's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 18% growth to the end of 2022 on an annualised basis. That is well above its historical decline of 5.7% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 5.2% annually. So it looks like Shell is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The highlight for us was that analysts increased their revenue forecasts for Shell 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 Shell.

Hungry for more information? At least one of Shell's 23 analysts has provided estimates out to 2024, 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.

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.