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Industry Analysts Just Made A Sizeable Upgrade To Their Star Bulk Carriers Corp. (NASDAQ:SBLK) Revenue Forecasts

Star Bulk Carriers Corp. (NASDAQ:SBLK) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The revenue forecast for this year has experienced a facelift, with analysts now much more optimistic on its sales pipeline.

Following the upgrade, the current consensus from Star Bulk Carriers' four analysts is for revenues of US$1.1b in 2024 which - if met - would reflect a credible 6.7% increase on its sales over the past 12 months. Per-share earnings are expected to bounce 92% to US$3.42. Before this latest update, the analysts had been forecasting revenues of US$919m and earnings per share (EPS) of US$3.45 in 2024. It seems analyst sentiment has certainly become more bullish on revenues, even though they haven't changed their view on earnings per share.

Check out our latest analysis for Star Bulk Carriers

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earnings-and-revenue-growth

Even though revenue forecasts increased, there was no change to the consensus price target of US$28.55, suggesting the analysts are focused on earnings as the driver of value creation.

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These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Star Bulk Carriers' past performance and to peers in the same industry. We would highlight that Star Bulk Carriers' revenue growth is expected to slow, with the forecast 9.1% annualised growth rate until the end of 2024 being well below the historical 12% p.a. growth over the last five years. Compare this with other companies in the same industry, which are forecast to see a revenue decline of 0.6% annually. Factoring in the forecast slowdown in growth, it's pretty clear that Star Bulk Carriers is still expected to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion from this consensus update is that there's been no major change in the business' prospects in recent times, with analysts holding earnings per share steady, in line with previous estimates. On the plus side, they also lifted their revenue estimates, and the company is expected to perform better than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Star Bulk Carriers.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have estimates - from multiple Star Bulk Carriers analysts - going out to 2026, and you can see them free on our platform here.

We also provide an overview of the Star Bulk Carriers Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.