New Forecasts: Here's What Analysts Think The Future Holds For Food Empire Holdings Limited (SGX:F03)

Food Empire Holdings Limited (SGX:F03) 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.

After this upgrade, Food Empire Holdings' sole analyst is now forecasting revenues of US$365m in 2022. This would be a satisfactory 4.9% improvement in sales compared to the last 12 months. Per-share earnings are expected to accumulate 7.4% to US$0.07. Before this latest update, the analyst had been forecasting revenues of US$322m and earnings per share (EPS) of US$0.051 in 2022. There has definitely been an improvement in perception recently, with the analyst substantially increasing both their earnings and revenue estimates.

See our latest analysis for Food Empire Holdings

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. The analyst is definitely expecting Food Empire Holdings' growth to accelerate, with the forecast 4.9% annualised growth to the end of 2022 ranking favourably alongside historical growth of 3.5% per annum 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 2.1% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analyst also expect Food Empire Holdings to grow faster than the wider industry.

The Bottom Line

The most important thing to take away from this upgrade is that the analyst upgraded their earnings per share estimates for this year, expecting improving business conditions. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. The clear improvement in sentiment should be enough to get most shareholders feeling more optimistic about Food Empire Holdings' future.

Better yet, our automated discounted cash flow calculation (DCF) suggests Food Empire Holdings could be moderately undervalued. You can learn more about our valuation methodology 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.