Yahoo Finance Imperial Oil Limited (TSE:IMO) Analysts Just Slashed This Year's Revenue Estimates By 20%
One thing we could say about the analysts on Imperial Oil Limited (TSE:IMO) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.
Following this downgrade, Imperial Oil's six analysts are forecasting 2024 revenues to be CA$51b, approximately in line with the last 12 months. Before the latest update, the analysts were foreseeing CA$63b of revenue in 2024. It looks like forecasts have become a fair bit less optimistic on Imperial Oil, given the measurable cut to revenue estimates.
Check out our latest analysis for Imperial Oil
We'd point out that there was no major changes to their price target of CA$98.07, suggesting the latest estimates were not enough to shift their view on the value of the business.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 0.5% by the end of 2024. This indicates a significant reduction from annual growth of 15% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 4.0% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Imperial Oil is expected to lag the wider industry.
The Bottom Line
The most important thing to take away is that analysts cut their revenue estimates for this year. They're also anticipating slower revenue growth than the wider market. Often, one downgrade can set off a daisy-chain of cuts, especially if an industry is in decline. So we wouldn't be surprised if the market became a lot more cautious on Imperial Oil after today.
Looking to learn more? We have estimates for Imperial Oil from its six analysts out until 2026, and you can see them free on our platform here.
Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies 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.
