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News Flash: Analysts Just Made A Substantial Upgrade To Their Alumina Limited (ASX:AWC) Forecasts

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·2-min read
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Celebrations may be in order for Alumina Limited (ASX:AWC) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The revenue forecast for this year has experienced a facelift, with the analysts now much more optimistic on its sales pipeline.

Following the upgrade, the current consensus from Alumina's ten analysts is for revenues of US$1.2m in 2020 which - if met - would reflect a sizeable 198% increase on its sales over the past 12 months. Before the latest update, the analysts were foreseeing US$1.0m of revenue in 2020. The consensus has definitely become more optimistic, showing a substantial gain in revenue forecasts.

See our latest analysis for Alumina


One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's clear from the latest estimates that Alumina's rate of growth is expected to accelerate meaningfully, with the forecast 198% revenue growth noticeably faster than its historical growth of 44% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 0.7% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Alumina is expected to grow much faster than its industry.

The Bottom Line

The highlight for us was that analysts increased their revenue forecasts for Alumina this year. The 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 Alumina.

These earnings upgrades look like a sterling endorsement, but before diving in - you should know that we've spotted 3 potential concern with Alumina, including the risk of cutting its dividend. For more information, you can click through to our platform to learn more about this and the 1 other concern we've identified .

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.

This article by Simply Wall St is general in nature. 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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