Analysts Just Made A Captivating Upgrade To Their Kennedy-Wilson Holdings, Inc. (NYSE:KW) Forecasts

Kennedy-Wilson Holdings, Inc. (NYSE:KW) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The analysts greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals.

Following the latest upgrade, the current consensus, from the three analysts covering Kennedy-Wilson Holdings, is for revenues of US$608m in 2022, which would reflect a considerable 14% reduction in Kennedy-Wilson Holdings' sales over the past 12 months. Statutory earnings per share are anticipated to tumble 74% to US$0.24 in the same period. Prior to this update, the analysts had been forecasting revenues of US$476m and earnings per share (EPS) of US$0.21 in 2022. So we can see there's been a pretty clear increase in analyst sentiment in recent times, with both revenues and earnings per share receiving a decent lift in the latest estimates.

View our latest analysis for Kennedy-Wilson Holdings

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. One more thing stood out to us about these estimates, and it's the idea that Kennedy-Wilson Holdings' decline is expected to accelerate, with revenues forecast to fall at an annualised rate of 26% to the end of 2022. This tops off a historical decline of 8.0% a year over the past five years. Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 6.2% annually. So while a broad number of companies are forecast to grow, unfortunately Kennedy-Wilson Holdings is expected to see its sales affected worse than other companies in the industry.

The Bottom Line

The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for this year. Pleasantly, analysts also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow slower than the wider market. With a serious upgrade to expectations, it might be time to take another look at Kennedy-Wilson Holdings.

Analysts are clearly in love with Kennedy-Wilson Holdings at the moment, but before diving in - you should be aware that we've identified some warning flags with the business, such as its declining profit margins. You can learn more, and discover the 2 other flags 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.

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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.