Yahoo Finance Analysts Have Been Trimming Their Eos Energy Enterprises, Inc. (NASDAQ:EOSE) Price Target After Its Latest Report
Eos Energy Enterprises, Inc. (NASDAQ:EOSE) last week reported its latest second-quarter results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. The results don't look great, especially considering that statutory losses grew 59% toUS$1.01 per share. Revenues of US$5.9m did beat expectations by 3.1%, but it looks like a bit of a cold comfort. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
See our latest analysis for Eos Energy Enterprises
Following the latest results, Eos Energy Enterprises' five analysts are now forecasting revenues of US$51.1m in 2022. This would be a huge 292% improvement in sales compared to the last 12 months. Losses are forecast to balloon 23% to US$3.00 per share. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$53.3m and losses of US$2.23 per share in 2022. So it's pretty clear the analysts have mixed opinions on Eos Energy Enterprises after this update; revenues were downgraded and per-share losses expected to increase.
The average price target fell 9.4% to US$7.25, implicitly signalling that lower earnings per share are a leading indicator for Eos Energy Enterprises' valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Eos Energy Enterprises analyst has a price target of US$9.00 per share, while the most pessimistic values it at US$6.00. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The period to the end of 2022 brings more of the same, according to the analysts, with revenue forecast to display 14x growth on an annualised basis. That is in line with its 1,208% annual growth over the past year. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 11% annually. So although Eos Energy Enterprises is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that the analysts increased their loss per share estimates for next year. They also downgraded their revenue estimates, although industry data suggests that Eos Energy Enterprises' revenues are expected to grow faster than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Eos Energy Enterprises analysts - going out to 2024, and you can see them free on our platform here.
It is also worth noting that we have found 5 warning signs for Eos Energy Enterprises (3 shouldn't be ignored!) that you need to take into consideration.
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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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