In This Article:
As you might know, Solid Power, Inc. (NASDAQ:SLDP) just kicked off its latest third-quarter results with some very strong numbers. Revenues of US$4.7m beat estimates by a substantial 43% margin. Unfortunately, Solid Power also reported a statutory loss of US$0.13 per share, which at least was smaller than the analysts expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Check out our latest analysis for Solid Power
Taking into account the latest results, the consensus forecast from Solid Power's twin analysts is for revenues of US$34.2m in 2025. This reflects a huge 90% improvement in revenue compared to the last 12 months. Losses are supposed to decline, shrinking 18% from last year to US$0.39. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$32.8m and losses of US$0.48 per share in 2025. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a cut to loss per share in particular.
The consensus price target fell 43%, to US$2.00, suggesting that the analysts remain pessimistic on the company, despite the improved earnings and revenue outlook.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting Solid Power's growth to accelerate, with the forecast 67% annualised growth to the end of 2025 ranking favourably alongside historical growth of 51% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 9.4% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Solid Power is expected to grow much faster than its industry.
The Bottom Line
The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Happily, they also upgraded their revenue estimates, and are forecasting them 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.
With that in mind, we wouldn't be too quick to come to a conclusion on Solid Power. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.