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It's been a good week for Tigo Energy, Inc. (NASDAQ:TYGO) shareholders, because the company has just released its latest annual results, and the shares gained 4.0% to US$1.04. The results don't look great, especially considering that statutory losses grew 34% toUS$1.04 per share. Revenues of US$54m did beat expectations by 3.4%, 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
See our latest analysis for Tigo Energy
Taking into account the latest results, the current consensus from Tigo Energy's four analysts is for revenues of US$88.7m in 2025. This would reflect a sizeable 64% increase on its revenue over the past 12 months. Losses are predicted to fall substantially, shrinking 55% to US$0.47. Before this latest report, the consensus had been expecting revenues of US$86.2m and US$0.57 per share in losses. So it seems there's been a definite increase in optimism about Tigo Energy's future following the latest consensus numbers, with a notable improvement in the loss per share forecasts in particular.
Despite these upgrades,the analysts have not made any major changes to their price target of US$3.03, implying that their latest estimates don't have a long term impact on what they think the stock is worth. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Tigo Energy analyst has a price target of US$4.50 per share, while the most pessimistic values it at US$1.10. So we wouldn't be assigning too much credibility to analyst price targets in this case, because there are clearly some widely different views on what kind of performance this business can generate. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business.
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 Tigo Energy is forecast to grow faster in the future than it has in the past, with revenues expected to display 64% annualised growth until the end of 2025. If achieved, this would be a much better result than the 1.6% annual decline over the past three years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 8.6% annually. Not only are Tigo Energy's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.