Need To Know: Analysts Are Much More Bullish On World Fuel Services Corporation (NYSE:INT) Revenues

Shareholders in World Fuel Services Corporation (NYSE:INT) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects. Investors have been pretty optimistic on World Fuel Services too, with the stock up 26% to US$27.72 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 current consensus from World Fuel Services' twin analysts is for revenues of US$59b in 2022 which - if met - would reflect a major 24% increase on its sales over the past 12 months. Statutory earnings per share are presumed to soar 39% to US$1.97. Previously, the analysts had been modelling revenues of US$49b and earnings per share (EPS) of US$1.90 in 2022. The forecasts seem more optimistic now, with a chunky increase in revenue and a small increase to earnings per share estimates.

Check out our latest analysis for World Fuel Services

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. For example, we noticed that World Fuel Services' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 54% growth to the end of 2022 on an annualised basis. That is well above its historical decline of 3.1% 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 decline 5.4% per year. So although World Fuel Services is expected to return to growth, it's also expected to grow revenues during a time when the wider industry is estimated to see revenue decline.

The Bottom Line

The most important thing to take away from this upgrade is that analysts upgraded their earnings per share estimates for this year, expecting improving business conditions. Fortunately, they also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at World Fuel Services.

Still, the long-term prospects of the business are much more relevant than next year's earnings. At least one analyst has provided forecasts out to 2024, which can be seen 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.

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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.