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Last week saw the newest quarterly earnings release from Fuel Tech, Inc. (NASDAQ:FTEK), an important milestone in the company's journey to build a stronger business. It was a curious result overall, with revenues coming in 7.3% below what the analyst had expected, at US$7.9m. The company broke even in terms of statutory earnings per share (EPS). The analyst typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimate suggests is in store for next year.
Check out our latest analysis for Fuel Tech
Taking into account the latest results, the current consensus from Fuel Tech's sole analyst is for revenues of US$29.2m in 2025. This would reflect a meaningful 12% increase on its revenue over the past 12 months. The statutory loss per share is expected to greatly reduce in the near future, narrowing 156% to US$0.05. In the lead-up to this report, the analyst had been modelling revenues of US$30.6m and break-even in 2025. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a earnings per share estimates.
The average price target lifted 100% to US$4.00, clearly signalling that the weaker revenue and EPS outlook are not expected to weigh on the stock over the longer term.
Of course, another way to look at these forecasts is to place them into context against the industry itself. One thing stands out from these estimates, which is that Fuel Tech is forecast to grow faster in the future than it has in the past, with revenues expected to display 9.2% annualised growth until the end of 2025. If achieved, this would be a much better result than the 0.7% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 7.1% per year. So it looks like Fuel Tech is expected to grow faster than its competitors, at least for a while.
The Bottom Line
The most important thing to take away is that the analyst increased their loss per share estimates for next year. They also downgraded Fuel Tech's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analyst clearly feeling that the intrinsic value of the business is improving.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.