Need To Know: Analysts Are Much More Bullish On Stoneridge, Inc. (NYSE:SRI) Revenues

Shareholders in Stoneridge, Inc. (NYSE:SRI) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects.

After the upgrade, the two analysts covering Stoneridge are now predicting revenues of US$860m in 2022. If met, this would reflect a meaningful 12% improvement in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of US$777m in 2022. It looks like there's been a clear increase in optimism around Stoneridge, given the nice gain to revenue forecasts.

View our latest analysis for Stoneridge

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Stoneridge's past performance and to peers in the same industry. For example, we noticed that Stoneridge's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 12% growth to the end of 2022 on an annualised basis. That is well above its historical decline of 2.1% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 16% per year. Although Stoneridge's revenues are expected to improve, it seems that the analysts are still bearish on the business, forecasting it to grow slower than the broader industry.

The Bottom Line

The highlight for us was that analysts increased their revenue forecasts for Stoneridge this year. They also expect company revenue to perform worse 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 Stoneridge.

Need some more information? We have analyst estimates for Stoneridge going out to 2023, and you can see them free on our platform here.

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.