News Flash: Analysts Just Made A Sizeable Upgrade To Their VirTra, Inc. (NASDAQ:VTSI) Forecasts

VirTra, Inc. (NASDAQ:VTSI) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with the analysts modelling a real improvement in business performance. Investors have been pretty optimistic on VirTra too, with the stock up 25% to US$7.42 over the past week. We'll be curious to see if these new estimates convince the market to lift the stock price higher still.

After the upgrade, the dual analysts covering VirTra are now predicting revenues of US$32m in 2023. If met, this would reflect a credible 2.7% improvement in sales compared to the last 12 months. Per-share earnings are expected to step up 14% to US$0.45. Before this latest update, the analysts had been forecasting revenues of US$29m and earnings per share (EPS) of US$0.19 in 2023. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.

See our latest analysis for VirTra

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. It's pretty clear that there is an expectation that VirTra's revenue growth will slow down substantially, with revenues to the end of 2023 expected to display 3.6% growth on an annualised basis. This is compared to a historical growth rate of 14% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 6.6% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than VirTra.

The Bottom Line

The most important thing to take away from this upgrade is that analysts upgraded their earnings per share estimates for this year, expecting improving business conditions. Pleasantly, analysts also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow slower than the wider market. The clear improvement in sentiment should be enough to get most shareholders feeling more optimistic about VirTra's future.

Analysts are clearly in love with VirTra at the moment, but before diving in - you should be aware that we've identified some warning flags with the business, such as concerns around earnings quality. For more information, you can click through to our platform to learn more about this and the 2 other risks we've identified .

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.