Shareholders in Harworth Group plc (LON:HWG) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects. The market seems to be pricing in some improvement in the business too, with the stock up 4.2% over the past week, closing at UK£1.25. Whether the upgrade is enough to drive the stock price higher is yet to be seen, however.

After the upgrade, the consensus from Harworth Group's dual analysts is for revenues of UK£102m in 2023, which would reflect a painful 39% decline in sales compared to the last year of performance. Prior to the latest estimates, the analysts were forecasting revenues of UK£79m in 2023. It looks like there's been a clear increase in optimism around Harworth Group, given the considerable lift to revenue forecasts.

Check out our latest analysis for Harworth Group  earnings-and-revenue-growth

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that sales are expected to reverse, with a forecast 39% annualised revenue decline to the end of 2023. That is a notable change from historical growth of 18% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue decline 7.2% annually for the foreseeable future. So it's pretty clear that Harworth Group's revenues are expected to shrink faster than the wider industry.

The Bottom Line

The highlight for us was that analysts increased their revenue forecasts for Harworth Group this year. Analysts also expect revenues to shrink faster than the wider market. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Harworth Group.

Of course, there's always more to the story. We have analyst estimates for Harworth Group going out to 2025, 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.

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