Analysts' Revenue Estimates For SATS Ltd. (SGX:S58) Are Surging Higher

SATS Ltd. (SGX:S58) shareholders will have a reason to smile today, with the analysts making substantial upgrades to next year's statutory forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects.

Following the upgrade, the latest consensus from SATS' seven analysts is for revenues of S$3.3b in 2024, which would reflect a substantial 110% improvement in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing S$2.8b of revenue in 2024. The consensus has definitely become more optimistic, showing a decent improvement in revenue forecasts.

Check out our latest analysis for SATS

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. For example, we noticed that SATS' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 81% growth to the end of 2024 on an annualised basis. That is well above its historical decline of 9.4% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 17% per year. Not only are SATS' revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts lifted their revenue estimates for next year. Analysts also expect revenues to grow faster 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 SATS.

Want more information? We have analyst estimates for SATS going out to 2025, and you can see them 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.