News Flash: Analysts Just Made A Meaningful Upgrade To Their Distribution Solutions Group, Inc. (NASDAQ:DSGR) Forecasts

Distribution Solutions Group, Inc. (NASDAQ:DSGR) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this 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 most recent consensus for Distribution Solutions Group from its dual analysts is for revenues of US$1.6b in 2023 which, if met, would be a solid 15% increase on its sales over the past 12 months. Per-share earnings are expected to surge 90% to US$1.92. Before this latest update, the analysts had been forecasting revenues of US$1.4b and earnings per share (EPS) of US$1.93 in 2023. It seems analyst sentiment has certainly become more bullish on revenues, even though they haven't changed their view on earnings per share.

Check out our latest analysis for Distribution Solutions Group

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Distribution Solutions Group's past performance and to peers in the same industry. We would highlight that Distribution Solutions Group's revenue growth is expected to slow, with the forecast 31% annualised growth rate until the end of 2023 being well below the historical 90% growth over the last year. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 4.6% annually. So it's pretty clear that, while Distribution Solutions Group's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with analysts reconfirming that earnings per share are expected to continue performing in line with their prior expectations. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Distribution Solutions Group.

Analysts are clearly in love with Distribution Solutions Group at the moment, but before diving in - you should be aware that we've identified some warning flags with the business, such as dilutive stock issuance over the past year. You can learn more, and discover the 3 other risks we've identified, 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.