New Forecasts: Here's What One Analyst Thinks The Future Holds For House of Control Group AS (OB:HOC)

Celebrations may be in order for House of Control Group AS (OB:HOC) shareholders, with the covering analyst delivering a significant upgrade to their statutory estimates for the company. The revenue forecast for this year has experienced a facelift, with the analyst now much more optimistic on its sales pipeline.

Following the upgrade, the current consensus from House of Control Group's solo analyst is for revenues of kr251m in 2022 which - if met - would reflect a major 41% increase on its sales over the past 12 months. Losses are predicted to fall substantially, shrinking 52% to kr1.01. Yet prior to the latest estimates, the analyst had been forecasting revenues of kr226m and losses of kr1.06 per share in 2022. So there's been quite a change-up of views after the recent consensus updates, with the analyst making a sizeable increase to their revenue forecasts while also reducing the estimated loss as the business grows towards breakeven.

Check out our latest analysis for House of Control 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. It's clear from the latest estimates that House of Control Group's rate of growth is expected to accelerate meaningfully, with the forecast 41% annualised revenue growth to the end of 2022 noticeably faster than its historical growth of 27% p.a. over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 23% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that House of Control Group is expected to grow much faster than its industry.

The Bottom Line

The highlight for us was that the consensus reduced its estimated losses this year, perhaps suggesting House of Control Group is moving incrementally towards profitability. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at House of Control Group.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for House of Control Group going out as far as 2023, and you can see them 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.