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CES Energy Solutions Corp. (TSE:CEU) defied analyst predictions to release its second-quarter results, which were ahead of market expectations. The company beat forecasts, with revenue of CA$553m, some 2.6% above estimates, and statutory earnings per share (EPS) coming in at CA$0.20, 33% ahead of expectations. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
View our latest analysis for CES Energy Solutions
Taking into account the latest results, the most recent consensus for CES Energy Solutions from seven analysts is for revenues of CA$2.33b in 2024. If met, it would imply an okay 4.3% increase on its revenue over the past 12 months. Statutory per share are forecast to be CA$0.81, approximately in line with the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of CA$2.29b and earnings per share (EPS) of CA$0.75 in 2024. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.
The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 7.5% to CA$9.91. 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 CES Energy Solutions analyst has a price target of CA$12.00 per share, while the most pessimistic values it at CA$8.50. 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. It's pretty clear that there is an expectation that CES Energy Solutions' revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 8.7% growth on an annualised basis. This is compared to a historical growth rate of 17% over the past five years. Compare this with other companies in the same industry, which are forecast to see a revenue decline of 5.4% annually. So it's clear that despite the slowdown in growth, CES Energy Solutions is still expected to grow meaningfully faster than the wider industry.