 shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The revenue forecast for this year has experienced a facelift, with analysts now much more optimistic on its sales pipeline.){kind=link}
AMAG Austria Metall AG (VIE:AMAG) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year’s forecasts. The revenue forecast for this year has experienced a facelift, with analysts now much more optimistic on its sales pipeline.
After this upgrade, AMAG Austria Metall’s two analysts are now forecasting revenues of €1.7b in 2022. This would be a satisfactory 2.3% improvement in sales compared to the last 12 months. Statutory earnings per share are expected to be €3.23, roughly flat on the last 12 months. Previously, the analysts had been modelling revenues of €1.6b and earnings per share (EPS) of €3.00 in 2022. The forecasts seem more optimistic now, with a solid increase in revenue and a small increase to earnings per share estimates.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the AMAG Austria Metall’s past performance and to peers in the same industry. It’s pretty clear that there is an expectation that AMAG Austria Metall’s revenue growth will slow down substantially, with revenues to the end of 2022 expected to display 4.6% growth on an annualised basis. This is compared to a historical growth rate of 6.6% over the past five years. Compare this with other companies in the same industry, which are forecast to see a revenue decline of 2.2% annually. So it’s clear that despite the slowdown in growth, AMAG Austria Metall is still expected to grow meaningfully faster than the wider industry.
The Bottom Line
The most important thing to take away from this upgrade is that analysts upgraded their earnings per share estimates for this year, expecting improving business conditions. Fortunately, they also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. Seeing the dramatic upgrade to this year’s forecasts, it might be time to take another look at AMAG Austria Metall.
With that said, the long-term trajectory of the company’s earnings is a lot more important than next year. We have analyst estimates for AMAG Austria Metall going out as far as 2025, and you can see them 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.