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Industry Analysts Just Made A Substantial Upgrade To Their Profire Energy, Inc. (NASDAQ:PFIE) Revenue Forecasts

·2-min read

Shareholders in Profire Energy, Inc. (NASDAQ:PFIE) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The analysts have sharply increased their revenue numbers, with a view that Profire Energy will make substantially more sales than they'd previously expected. The stock price has risen 9.6% to US$1.25 over the past week, suggesting investors are becoming more optimistic. Could this big upgrade push the stock even higher?

Following the upgrade, the latest consensus from Profire Energy's three analysts is for revenues of US$38m in 2022, which would reflect a meaningful 9.1% improvement in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing US$34m of revenue in 2022. The consensus has definitely become more optimistic, showing a solid increase in revenue forecasts.

View our latest analysis for Profire Energy

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These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Profire Energy's past performance and to peers in the same industry. For example, we noticed that Profire Energy's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 19% growth to the end of 2022 on an annualised basis. That is well above its historical decline of 10% a year 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 11% per year. Not only are Profire Energy'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 to take away from this upgrade is that analysts lifted their revenue estimates for this year. Analysts also expect revenues 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 Profire Energy.

Looking to learn more? At least one of Profire Energy's three analysts has provided estimates out to 2024, which can be seen 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

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