Party Time: Brokers Just Made Major Increases To Their NewAge, Inc. (NASDAQ:NBEV) Earnings Forecasts

NewAge, Inc. (NASDAQ:NBEV) shareholders will have a reason to smile today, with the analysts making substantial upgrades to next year's forecasts. The analysts greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals.

Following the upgrade, the current consensus from NewAge's dual analysts is for revenues of US$510m in 2021 which - if met - would reflect a sizeable 105% increase on its sales over the past 12 months. Losses are expected to turn into profits real soon, with the analysts forecasting US$0.08 in per-share earnings. Yet before this consensus update, the analysts had been forecasting revenues of US$312m and losses of US$0.09 per share in 2021. It looks like there's been a definite improvement in business conditions, with a revenue upgrade supposed to lead to profitability sooner than previously forecast.

See our latest analysis for NewAge

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. It's clear from the latest estimates that NewAge's rate of growth is expected to accelerate meaningfully, with the forecast 105% revenue growth noticeably faster than its historical growth of 60% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 6.3% next year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect NewAge to grow faster than the wider industry.

The Bottom Line

The most important thing to take away from this upgrade is that the consensus now expects NewAge to become profitable next year. They also upgraded their revenue estimates for next year, and sales are expected to grow faster than the wider market. With a serious upgrade to expectations, it might be time to take another look at NewAge.

Analysts are clearly in love with NewAge at the moment, but before diving in - you should be aware that we've identified some warning flags with the business, such as major dilution from new stock issuance in the past year. For more information, you can click through to our platform to learn more about this and the 1 other warning sign we've identified .

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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