Industry Analysts Just Upgraded Their Odfjell Drilling Ltd. (OB:ODL) Revenue Forecasts By 13%

Odfjell Drilling Ltd. (OB:ODL) 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 Odfjell Drilling will make substantially more sales than they'd previously expected.

After the upgrade, the four analysts covering Odfjell Drilling are now predicting revenues of US$725m in 2023. If met, this would reflect a reasonable 5.7% improvement in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of US$645m in 2023. The consensus has definitely become more optimistic, showing a nice gain to revenue forecasts.

See our latest analysis for Odfjell Drilling

Of course, another way to look at these forecasts is to place them into context against the industry itself. One thing stands out from these estimates, which is that Odfjell Drilling is forecast to grow faster in the future than it has in the past, with revenues expected to display 12% annualised growth until the end of 2023. If achieved, this would be a much better result than the 2.9% annual decline 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 10% annually. So while Odfjell Drilling's revenues are expected to improve, it seems that it is expected to grow at about the same rate as the overall industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts lifted their revenue estimates for this year. The analysts also expect revenues to grow approximately in line with the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Odfjell Drilling.

Analysts are clearly in love with Odfjell Drilling at the moment, but before diving in - you should be aware that we've identified some warning flags with the business, such as its declining profit margins. You can learn more, and discover the 3 other risks we've identified, 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.

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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.