Shareholders in Finance of America Companies Inc. (NYSE:FOA) 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.
Following the upgrade, the current consensus from Finance of America Companies' two analysts is for revenues of US$547m in 2024 which - if met - would reflect a major 226% increase on its sales over the past 12 months. Before the latest update, the analysts were foreseeing US$297m of revenue in 2024. The consensus has definitely become more optimistic, showing a very substantial lift in revenue forecasts.
Of course, another way to look at these forecasts is to place them into context against the industry itself. One thing stands out from these estimates, which is that Finance of America Companies is forecast to grow faster in the future than it has in the past, with revenues expected to display 4x annualised growth until the end of 2024. If achieved, this would be a much better result than the 95% annual decline over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 3.4% per year. Not only are Finance of America Companies' 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 lifted their revenue estimates for this year. The analysts also expect revenues to grow 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 Finance of America Companies.
Still got questions? At least one of Finance of America Companies' two analysts has provided estimates out to 2026, which can be seen for 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 backed by insiders.
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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.