One Analyst's Revenue Estimates For The Glimpse Group, Inc. (NASDAQ:VRAR) Are Surging Higher

Celebrations may be in order for The Glimpse Group, Inc. (NASDAQ:VRAR) shareholders, with the covering analyst delivering a significant upgrade to their statutory estimates for the company. 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 Glimpse Group too, with the stock up 25% to US$1.52 over the past week. It will be interesting to see if today's upgrade is enough to propel the stock even higher.

Following the latest upgrade, the one analyst covering Glimpse Group provided consensus estimates of US$10m revenue in 2024, which would reflect an uneasy 12% decline on its sales over the past 12 months. Losses are predicted to fall substantially, shrinking 75% to US$0.38 per share. Yet before this consensus update, the analyst had been forecasting revenues of US$9.2m and losses of US$0.40 per share in 2024. So there's been quite a change-up of views after the recent consensus updates, with the analyst making a sizeable increase to their revenue forecasts while also reducing the estimated loss as the business grows towards breakeven.

See our latest analysis for Glimpse Group

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. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 22% by the end of 2024. This indicates a significant reduction from annual growth of 52% over the last three years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 10% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Glimpse Group is expected to lag the wider industry.

The Bottom Line

The most important thing here is that the analyst reduced their loss per share estimates for this year, reflecting increased optimism around Glimpse Group's prospects. Fortunately, they also upgraded their revenue estimates, and are forecasting revenues to grow slower than the wider market. Given that the analyst appears to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Glimpse Group.

The covering analyst is clearly in love with Glimpse Group at the moment, but before diving in - you should be aware that we've identified some warning flags with the business, such as a short cash runway. For more information, you can click through to our platform to learn more about this and the 4 other risks we've identified .

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.