Rainbows and Unicorns: The ToughBuilt Industries, Inc. (NASDAQ:TBLT) Analyst Just Became A Lot More Optimistic

ToughBuilt Industries, Inc. (NASDAQ:TBLT) shareholders will have a reason to smile today, with the covering analyst making substantial upgrades to next year's statutory forecasts. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with the analyst modelling a real improvement in business performance.

Following the upgrade, the latest consensus from ToughBuilt Industries' sole analyst is for revenues of US$87m in 2022, which would reflect a major 52% improvement in sales compared to the last 12 months. Losses are predicted to fall substantially, shrinking 54% to US$0.12. However, before this estimates update, the consensus had been expecting revenues of US$78m and US$0.15 per share in losses. So there's been quite a change-up of views after the recent consensus updates, with the analyst making a sizeable increase to their revenue forecasts while also reducing the estimated loss as the business grows towards breakeven.

Check out our latest analysis for ToughBuilt Industries

Of course, another way to look at these forecasts is to place them into context against the industry itself. We can infer from the latest estimates that forecasts expect a continuation of ToughBuilt Industries'historical trends, as the 40% annualised revenue growth to the end of 2022 is roughly in line with the 36% annual revenue growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 10% annually. So although ToughBuilt Industries is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The most important thing here is that the analyst reduced their loss per share estimates for next year, reflecting increased optimism around ToughBuilt Industries' prospects. They also upgraded their revenue estimates for next 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 ToughBuilt Industries' future.

The covering analyst is clearly in love with ToughBuilt Industries at the moment, but before diving in - you should be aware that we've identified some warning flags with the business, such as major dilution from new stock issuance in the past year. You can learn more, and discover the 3 other flags 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.