Newsflash: Analysts just made a major update to their forecast for Flexion Mobile Plc (STO: FLEXM)

Celebrations can be appropriate for Bending Mobile Plc (STO:FLEXM) shareholders, with the coverage analyst providing a meaningful update to their statutory estimates for the company. The analyst significantly raised his earnings estimates, suggesting a marked improvement in the company’s fundamentals.

After this upgrade, Solo Analyst Flexion Mobile now forecasts revenue of £56m in 2022. This would represent a whopping 61% improvement in sales over the last 12 months. Statutory earnings per share are expected to jump 323% to £0.06. Prior to this update, the analyst had forecast revenue of £47m and earnings per share (EPS) of UK£0.04 in 2022. So we can see that there has been quite a marked increase of analyst sentiment lately, with both revenue and earnings per share receiving a decent boost in the latest estimates.

See our latest review for Flexion Mobile

OM: FLEXM Earnings and Revenue Growth May 22, 2022

With these upgrades, we are not surprised to see that the analyst has raised his price target by 36% to £2.54 per share.

Looking at the big picture, one way to make sense of these forecasts is to see how they compare to both past performance and industry growth estimates. It is clear from the latest estimates that Flexion Mobile’s growth rate is set to accelerate significantly, with forecast annualized revenue growth of 89% through the end of 2022 significantly faster than its historical growth of 57%. per year over the past five years. In contrast, our data suggests that other companies (with analyst coverage) in a similar industry are expected to grow revenue by 15% annually. It seems obvious that while the growth outlook is brighter than in the recent past, the analyst also expects Flexion Mobile to grow faster than the industry as a whole.

The essential

The biggest lesson for us from these new estimates is that the analyst has updated its earnings per share estimates, with an improvement in earnings power expected for this year. Fortunately, the analyst has also updated its revenue estimates, and our data indicates that sales should perform better than the broader market. Given that the consensus seems almost universally bullish, with a substantial increase in forecasts and a higher price target, Flexion Mobile might be worth investigating further.

That said, the company’s long-term earnings trajectory is much more important than next year. We have analyst estimates for Flexion Mobile going out to 2024, and you can view them for free on our platform here.

Another way to search for interesting businesses that might be reach an inflection point is to track whether management is buying or selling, with our free list of growing companies insiders are buying.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

Casey J. Nelson