Industry Analysts Just Made A Substantial Upgrade To Their Profire Energy, Inc. (NASDAQ:PFIE) Revenue Forecasts

Profire Energy, Inc. (NASDAQ:PFIE) 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 upgrade, the current consensus from Profire Energy's two analysts is for revenues of US$43m in 2022 which - if met - would reflect a huge 25% increase on its sales over the past 12 months. Statutory earnings per share are anticipated to dive 45% to US$0.01 in the same period. Previously, the analysts had been modelling revenues of US$38m and earnings per share (EPS) of US$0.01 in 2022. It seems analyst sentiment has certainly become more bullish on revenues, even though they haven't changed their view on earnings per share.

Our analysis indicates that PFIE is potentially overvalued!

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 57% growth to the end of 2022 on an annualised basis. That is well above its historical decline of 10% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 12% annually. So it looks like Profire Energy is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with analysts reconfirming that earnings per share are expected to continue performing in line with their prior expectations. 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 Profire Energy.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have analyst estimates for Profire Energy going out as far as 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.