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World Fuel Services Corporation (NYSE:INT) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects.
Following the upgrade, the current consensus from World Fuel Services' dual analysts is for revenues of US$49b in 2022 which - if met - would reflect a sizeable 29% increase on its sales over the past 12 months. Per-share earnings are expected to leap 48% to US$1.90. Before this latest update, the analysts had been forecasting revenues of US$43b and earnings per share (EPS) of US$1.85 in 2022. The forecasts seem more optimistic now, with a substantial gain in revenue and a slight bump in earnings per share estimates.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. One thing stands out from these estimates, which is that World Fuel Services is forecast to grow faster in the future than it has in the past, with revenues expected to display 40% annualised growth until the end of 2022. If achieved, this would be a much better result than the 5.3% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 1.1% annually. Not only are World Fuel Services' 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 upgraded their earnings per share estimates for this year, expecting improving business conditions. 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 World Fuel Services.
Still, the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for World Fuel Services going out as far as 2024, 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.
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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.