The Glimpse Group, Inc. (NASDAQ:VRAR) shareholders will have a reason to smile today, with the covering analyst making substantial upgrades to this year's forecasts. The analyst has sharply increased their revenue numbers, with a view that Glimpse Group will make substantially more sales than they'd previously expected. Investors have been pretty optimistic on Glimpse Group too, with the stock up 15% to US$1.39 over the past week. Could this upgrade be enough to drive the stock even higher?

Following the latest upgrade, the solitary analyst covering Glimpse Group provided consensus estimates of US$10m revenue in 2024, which would reflect a chunky 12% decline on its sales over the past 12 months. The loss per share is anticipated to greatly reduce in the near future, narrowing 75% to US$0.38. However, before this estimates update, the consensus had been expecting revenues of US$9.2m and US$0.40 per share in losses. So there's been quite a change-up of views after the recent consensus updates, with the analyst making a sizeable increase to their revenue forecasts while also reducing the estimated loss as the business grows towards breakeven.

View our latest analysis for Glimpse Group

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Glimpse Group's past performance and to peers in the same industry. We would highlight that sales are expected to reverse, with a forecast 22% annualised revenue decline to the end of 2024. That is a notable change from historical growth of 52% over the last three years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 10.0% annually for the foreseeable future. It's pretty clear that Glimpse Group's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The highlight for us was that the consensus reduced its estimated losses this year, perhaps suggesting Glimpse Group is moving incrementally towards profitability. Fortunately, they also upgraded their revenue estimates, and are forecasting revenues to grow slower than the wider market. Given that the analyst appears to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Glimpse Group.

The covering analyst is definitely bullish on Glimpse Group, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including dilutive stock issuance over the past year. For more information, you can click through to our platform to learn more about this and the 4 other warning signs we've identified .

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 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.