Growth Investors: Industry Analysts Just Upgraded Their FlexShopper, Inc. (NASDAQ:FPAY) Revenue Forecasts By 13%

Shareholders in FlexShopper, Inc. (NASDAQ:FPAY) 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. Investors have been pretty optimistic on FlexShopper too, with the stock up 43% to US$1.56 over the past week. We'll be curious to see if these new estimates convince the market to lift the stock price higher still.

Following the upgrade, the current consensus from FlexShopper's three analysts is for revenues of US$135m in 2024 which - if met - would reflect a sizeable 25% increase on its sales over the past 12 months. Per-share losses are expected to explode, reaching US$0.38 per share. Yet before this consensus update, the analysts had been forecasting revenues of US$120m and losses of US$0.38 per share in 2024. So there's definitely been a change in sentiment in this update, with the analysts upgrading next year's revenue estimates, while at the same time holding losses per share steady.

View our latest analysis for FlexShopper

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analysts are definitely expecting FlexShopper's growth to accelerate, with the forecast 19% annualised growth to the end of 2024 ranking favourably alongside historical growth of 11% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 5.4% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that FlexShopper is expected to grow much faster than its industry.

The Bottom Line

The highlight for us was that the consensus reduced its estimated losses next year, perhaps suggesting FlexShopper is moving incrementally towards profitability. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better 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 FlexShopper.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At Simply Wall St, we have a full range of analyst estimates for FlexShopper going out to 2024, 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.