New Forecasts: Here's What Analysts Think The Future Holds For Awilco LNG ASA (OB:ALNG)

Shareholders in Awilco LNG ASA (OB:ALNG) may be thrilled to learn that the covering analyst has just delivered a major upgrade to their near-term forecasts. The consensus statutory numbers for both revenue and earnings per share (EPS) increased, with their view clearly much more bullish on the company's business prospects. Investors have been pretty optimistic on Awilco LNG too, with the stock up 15% to kr5.44 over the past week. It will be interesting to see if today's upgrade is enough to propel the stock even higher.

After this upgrade, Awilco LNG's one analyst is now forecasting revenues of US$62m in 2022. This would be a satisfactory 3.6% improvement in sales compared to the last 12 months. Per-share earnings are expected to soar 21% to US$0.19. Prior to this update, the analyst had been forecasting revenues of US$53m and earnings per share (EPS) of US$0.13 in 2022. So we can see there's been a pretty clear increase in analyst sentiment in recent times, with both revenues and earnings per share receiving a decent lift in the latest estimates.

View our latest analysis for Awilco LNG

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Awilco LNG's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Awilco LNG's revenue growth will slow down substantially, with revenues to the end of 2022 expected to display 3.6% growth on an annualised basis. This is compared to a historical growth rate of 14% over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue shrink 2.7% per year. Factoring in the forecast slowdown in growth, it's pretty clear that Awilco LNG is still expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away from this upgrade is that the analyst upgraded their earnings per share estimates for this year, expecting improving business conditions. Fortunately, they also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. With a serious upgrade to expectations, it might be time to take another look at Awilco LNG.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At least one analyst has provided forecasts out to 2024, which can be seen 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.

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.