Rubellite Energy Inc. (TSE:RBY) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The analysts greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals. Investors have been pretty optimistic on Rubellite Energy too, with the stock up 10% to CA$2.39 over the past week. We'll be curious to see if these new estimates convince the market to lift the stock price higher still.

Following the upgrade, the current consensus from Rubellite Energy's twin analysts is for revenues of CA$163m in 2024 which - if met - would reflect a major 78% increase on its sales over the past 12 months. Per-share earnings are expected to shoot up 112% to CA$0.43. Previously, the analysts had been modelling revenues of CA$122m and earnings per share (EPS) of CA$0.37 in 2024. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.

Check out our latest analysis for Rubellite Energy

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 Rubellite Energy's rate of growth is expected to accelerate meaningfully, with the forecast 116% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 68% over the past year. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 2.6% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Rubellite Energy is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts upgraded their earnings per share estimates for this year, expecting improving business conditions. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. With a serious upgrade to expectations, it might be time to take another look at Rubellite Energy.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for Rubellite Energy going out as far as 2026, 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 with high insider ownership.

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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.