Industry Analysts Just Upgraded Their Scatec ASA (OB:SCATC) Revenue Forecasts By 11%

Scatec ASA (OB:SCATC) 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 Scatec will make substantially more sales than they'd previously expected. The market seems to be pricing in some improvement in the business too, with the stock up 6.7% over the past week, closing at kr106. Whether the upgrade is enough to drive the stock price higher is yet to be seen, however.

Following the upgrade, the latest consensus from Scatec's eight analysts is for revenues of kr4.4b in 2022, which would reflect a substantial 45% improvement in sales compared to the last 12 months. Losses are presumed to reduce, shrinking 18% from last year to kr4.90. Yet before this consensus update, the analysts had been forecasting revenues of kr4.0b and losses of kr4.92 per share in 2022. So there's definitely been a change in sentiment in this update, with the analysts upgrading this year's revenue estimates, while at the same time holding losses per share steady.

View our latest analysis for Scatec

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Scatec's past performance and to peers in the same industry. The analysts are definitely expecting Scatec's growth to accelerate, with the forecast 110% annualised growth to the end of 2022 ranking favourably alongside historical growth of 26% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 6.5% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Scatec to grow faster than the wider industry.

The Bottom Line

The most important thing here is that analysts reduced their loss per share estimates for this year, reflecting increased optimism around Scatec's prospects. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better 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 Scatec.

It's great to see the analysts upgrading their estimates, but the biggest highlight to us is that the business is expected to become profitable in the foreseeable future. You can learn more about these forecasts, 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.

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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.