New Forecasts: Here's What Analysts Think The Future Holds For Tethys Oil AB (publ) (STO:TETY)

Tethys Oil AB (publ) (STO:TETY) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The analysts have sharply increased their revenue numbers, with a view that Tethys Oil will make substantially more sales than they'd previously expected.

Following the upgrade, the current consensus from Tethys Oil's three analysts is for revenues of US$167m in 2023 which - if met - would reflect a reasonable 6.4% increase on its sales over the past 12 months. Statutory earnings per share are anticipated to dip 4.5% to US$1.72 in the same period. Previously, the analysts had been modelling revenues of US$142m and earnings per share (EPS) of US$1.60 in 2023. The forecasts seem more optimistic now, with a nice gain to revenue and a small increase to earnings per share estimates.

See our latest analysis for Tethys Oil

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. One thing stands out from these estimates, which is that Tethys Oil is forecast to grow faster in the future than it has in the past, with revenues expected to display 6.4% annualised growth until the end of 2023. If achieved, this would be a much better result than the 2.8% 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 decline 3.1% per year. So it's pretty clear that Tethys Oil is expected to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for this year. On the plus side, they also lifted their revenue estimates, and the company is 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 Tethys Oil.

These earnings upgrades look like a sterling endorsement, but before diving in - you should know that we've spotted 3 potential risk with Tethys Oil, including concerns around earnings quality. For more information, you can click through to our platform to learn more about this and the 1 other risk we've identified .

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.