Analysts Just Shipped A Captivating Upgrade To Their Telos Corporation (NASDAQ:TLS) Estimates

Celebrations may be in order for Telos Corporation (NASDAQ:TLS) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with the analysts modelling a real improvement in business performance. Telos has also found favour with investors, with the stock up an extraordinary 133% to US$5.55 over the past week. It will be interesting to see if today's upgrade is enough to propel the stock even higher.

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Following the upgrade, the most recent consensus for Telos from its five analysts is for revenues of US$158m in 2025 which, if met, would be a substantial 36% increase on its sales over the past 12 months. The loss per share is anticipated to greatly reduce in the near future, narrowing 50% to US$0.39. Yet prior to the latest estimates, the analysts had been forecasting revenues of US$143m and losses of US$0.49 per share in 2025. So there's been quite a change-up of views after the recent consensus updates, with the analysts making a sizeable increase to their revenue forecasts while also reducing the estimated loss as the business grows towards breakeven.

Check out our latest analysis for Telos

It will come as no surprise to learn that the analysts have increased their price target for Telos 39% to US$5.35 on the back of these upgrades.

Of course, another way to look at these forecasts is to place them into context against the industry itself. One thing stands out from these estimates, which is that Telos is forecast to grow faster in the future than it has in the past, with revenues expected to display 84% annualised growth until the end of 2025. If achieved, this would be a much better result than the 12% 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 13% per year. Not only are Telos' 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 Telos' prospects. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. Given that the consensus looks almost universally bullish, with a substantial increase to forecasts and a higher price target, Telos could be worth investigating further.

These earnings upgrades look like a sterling endorsement, but before diving in - you should know that we've spotted 3 potential flags with Telos, including recent substantial insider selling. 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 with high insider ownership.

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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.