Stock Analysis

Industry Analysts Just Made A Substantial Upgrade To Their Smart Sand, Inc. (NASDAQ:SND) Revenue Forecasts

  •  Updated
NasdaqGS:SND
Source: Shutterstock

Shareholders in Smart Sand, Inc. (NASDAQ:SND) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The revenue forecast for next year has experienced a facelift, with the analysts now much more optimistic on its sales pipeline. Smart Sand has also found favour with investors, with the stock up a notable 21% to US$1.70 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 consensus from four analysts covering Smart Sand is for revenues of US$121m in 2021, implying an uneasy 16% decline in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of US$109m in 2021. The consensus has definitely become more optimistic, showing a nice increase in revenue forecasts.

Check out our latest analysis for Smart Sand

earnings-and-revenue-growth
NasdaqGS:SND Earnings and Revenue Growth November 19th 2020

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 revenue decline of 16%, a significant reduction from annual growth of 30% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 5.4% annually for the foreseeable future. It's pretty clear that Smart Sand's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The highlight for us was that analysts increased their revenue forecasts for Smart Sand next year. They also expect company revenue to perform worse 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 Smart Sand.

These earnings upgrades look like a sterling endorsement, but before diving in - you should know that we've spotted 5 potential risks with Smart Sand, including dilutive stock issuance over the past year. You can learn more, and discover the 4 other risks we've identified, for 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.

When trading Smart Sand or any other investment, use the platform considered by many to be the Professional's Gateway to the Worlds Market, Interactive Brokers. You get the lowest-cost* trading on stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted


Valuation is complex, but we're helping make it simple.

Find out whether Smart Sand is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

View the Free Analysis