Party Time: One Broker Just Made Major Increases To Their B3 Consulting Group AB (publ) (STO:B3) Earnings Forecast

Celebrations may be in order for B3 Consulting Group AB (publ) (STO:B3) shareholders, with the covering analyst delivering a significant upgrade to their statutory estimates for the company. The analyst greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals. Investor sentiment seems to be improving too, with the share price up 7.3% to kr162 over the past 7 days. Could this big upgrade push the stock even higher?

Following the upgrade, the current consensus from B3 Consulting Group's single analyst is for revenues of kr1.3b in 2023 which - if met - would reflect a solid 17% increase on its sales over the past 12 months. Per-share earnings are expected to accumulate 3.5% to kr11.59. Before this latest update, the analyst had been forecasting revenues of kr1.1b and earnings per share (EPS) of kr5.48 in 2023. So we can see there's been a pretty clear increase in analyst sentiment in recent times, with both revenues and earnings per share receiving a decent lift in the latest estimates.

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Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that B3 Consulting Group's rate of growth is expected to accelerate meaningfully, with the forecast 13% annualised revenue growth to the end of 2023 noticeably faster than its historical growth of 9.7% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 11% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analyst also expect B3 Consulting Group to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us from these new estimates is that the analyst upgraded their earnings per share estimates, with improved earnings power expected for next year. Fortunately, the analyst also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. With a serious upgrade to expectations, it might be time to take another look at B3 Consulting Group.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2024, 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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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.