One Analyst's Earnings Estimates For Concordia Maritime AB (publ) (STO:CCOR B) Are Surging Higher

Concordia Maritime AB (publ) (STO:CCOR B) shareholders will have a reason to smile today, with the covering analyst making substantial upgrades to this year's 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.

Following the latest upgrade, Concordia Maritime's solo analyst currently expects revenues in 2021 to be kr841m, approximately in line with the last 12 months. Losses are supposed to balloon 41% to kr6.38 per share. However, before this estimates update, the consensus had been expecting revenues of kr683m and kr5.60 per share in losses. Ergo, there's been a clear change in sentiment, with the analyst lifting this year's revenue estimates, while at the same time increasing their loss per share forecasts to reflect the cost of achieving this growth.

Check out our latest analysis for Concordia Maritime

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that sales are expected to reverse, with a forecast 2.5% annualised revenue decline to the end of 2021. That is a notable change from historical growth of 3.2% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 5.4% per year. It's pretty clear that Concordia Maritime's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to take away is that the analyst increased their loss per share estimates for this year. Pleasantly, the analyst also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow slower than the wider market. The clear improvement in sentiment should be enough to get most shareholders feeling more optimistic about Concordia Maritime's future.

Still, the long-term prospects of the business are much more relevant than next year's earnings. At least one analyst has provided forecasts out to 2023, 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.

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