Analyst Forecasts For Profire Energy, Inc. (NASDAQ:PFIE) Are Surging Higher

By
Simply Wall St
Published
May 06, 2022
NasdaqCM:PFIE
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Celebrations may be in order for Profire Energy, Inc. (NASDAQ:PFIE) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The analysts greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals. The market seems to be pricing in some improvement in the business too, with the stock up 7.5% over the past week, closing at US$1.41. It will be interesting to see if this latest upgrade is enough to kickstart further buying interest in the stock.

After the upgrade, the three analysts covering Profire Energy are now predicting revenues of US$34m in 2022. If met, this would reflect a notable 10% improvement in sales compared to the last 12 months. Per-share earnings are expected to soar 522% to US$0.023. Before this latest update, the analysts had been forecasting revenues of US$30m and earnings per share (EPS) of US$0.01 in 2022. So we can see there's been a pretty clear increase in analyst sentiment in recent times, with both revenues and earnings per share receiving a decent lift in the latest estimates.

See our latest analysis for Profire Energy

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NasdaqCM:PFIE Earnings and Revenue Growth May 6th 2022

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. For example, we noticed that Profire Energy's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 14% growth to the end of 2022 on an annualised basis. That is well above its historical decline of 9.0% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 9.6% per year. Not only are Profire Energy's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for this year. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. With a serious upgrade to expectations, it might be time to take another look at Profire Energy.

Still, the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Profire Energy going out to 2024, and you can see them free on our platform here..

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.

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