One Analyst's Revenue Estimates For Climb Global Solutions, Inc. (NASDAQ:CLMB) Are Surging Higher

Celebrations may be in order for Climb Global Solutions, Inc. (NASDAQ:CLMB) 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.

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After the upgrade, the solitary analyst covering Climb Global Solutions is now predicting revenues of US$546m in 2025. If met, this would reflect a modest 6.8% improvement in sales compared to the last 12 months. Per-share earnings are expected to grow 18% to US$4.98. Prior to this update, the analyst had been forecasting revenues of US$489m and earnings per share (EPS) of US$4.90 in 2025. It seems analyst sentiment has certainly become more bullish on revenues, even though they haven't changed their view on earnings per share.

See our latest analysis for Climb Global Solutions

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's pretty clear that there is an expectation that Climb Global Solutions' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 9.2% growth on an annualised basis. This is compared to a historical growth rate of 14% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 7.3% per year. So it's pretty clear that, while Climb Global Solutions' revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analyst reconfirming that earnings per share are expected to continue performing in line with their prior expectations. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Climb Global Solutions.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

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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.