Industry Analysts Just Upgraded Their California Resources Corporation (NYSE:CRC) Revenue Forecasts By 12%

Celebrations may be in order for California Resources Corporation (NYSE:CRC) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The analysts have sharply increased their revenue numbers, with a view that California Resources will make substantially more sales than they'd previously expected.

Following the latest upgrade, the current consensus, from the five analysts covering California Resources, is for revenues of US$2.8b in 2023, which would reflect a sizeable 21% reduction in California Resources' sales over the past 12 months. Before the latest update, the analysts were foreseeing US$2.5b of revenue in 2023. It looks like there's been a clear increase in optimism around California Resources, given the nice gain to revenue forecasts.

View our latest analysis for California Resources

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 27% by the end of 2023. This indicates a significant reduction from annual growth of 1.7% 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 4.4% annually for the foreseeable future. The forecasts do look bearish for California Resources, since they're expecting it to shrink faster than the industry.

The Bottom Line

The highlight for us was that analysts increased their revenue forecasts for California Resources this year. They're also forecasting for revenues to shrink at a quicker rate than companies in the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at California Resources.

Analysts are definitely bullish on California Resources, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including concerns around earnings quality. For more information, you can click through to our platform to learn more about this and the 1 other warning sign we've identified .

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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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.