Analysts Just Shipped A Notable Upgrade To Their TravelCenters of America Inc. (NASDAQ:TA) Estimates

Celebrations may be in order for TravelCenters of America Inc. (NASDAQ:TA) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The analysts greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals.

Following the upgrade, the current consensus from TravelCenters of America's three analysts is for revenues of US$7.0b in 2021 which - if met - would reflect a sizeable 38% increase on its sales over the past 12 months. Losses are forecast to hold steady at around US$0.12. Yet prior to the latest estimates, the analysts had been forecasting revenues of US$6.0b and losses of US$0.79 per share in 2021. We can see there's definitely been a change in sentiment in this update, with the analysts administering a sizeable upgrade to this year's revenue estimates, while at the same time reducing their loss estimates.

Check out our latest analysis for TravelCenters of America

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 thing stands out from these estimates, which is that TravelCenters of America is forecast to grow faster in the future than it has in the past, with revenues expected to display 53% annualised growth until the end of 2021. If achieved, this would be a much better result than the 0.006% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 10% per year. Not only are TravelCenters of America's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.

The Bottom Line

The most important thing here is that analysts reduced their loss per share estimates for this year, reflecting increased optimism around TravelCenters of America's prospects. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. The clear improvement in sentiment should be enough to get most shareholders feeling more optimistic about TravelCenters of America's future.

These earnings upgrades look like a sterling endorsement, but before diving in - you should know that we've spotted 3 potential flag with TravelCenters of America, including recent substantial insider selling. You can learn more, and discover the 1 other flag 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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