Industry Analysts Just Made A Notable Upgrade To Their Berry Corporation (NASDAQ:BRY) Revenue Forecasts

Berry Corporation (NASDAQ:BRY) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects.

Following the latest upgrade, the three analysts covering Berry provided consensus estimates of US$878m revenue in 2023, which would reflect an uncomfortable 14% decline on its sales over the past 12 months. Before the latest update, the analysts were foreseeing US$718m of revenue in 2023. It looks like there's been a clear increase in optimism around Berry, given the very substantial lift in revenue forecasts.

Check out our latest analysis for Berry

Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 18% by the end of 2023. This indicates a significant reduction from annual growth of 14% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue decline 3.9% annually for the foreseeable future. So it's pretty clear that Berry's revenues are expected to shrink faster than the wider industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts lifted their revenue estimates for this year. They're also forecasting for revenues to shrink at a quicker rate than companies in 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 Berry.

These earnings upgrades look like a sterling endorsement, but before diving in - you should know that we've spotted 3 potential risks with Berry, including a weak balance sheet. For more information, you can click through to our platform to learn more about this and the 2 other risks we've identified .

We also provide an overview of the Berry Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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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.