The investors in Pioneer Power Solutions, Inc.'s (NASDAQ:PPSI) will be rubbing their hands together with glee today, after the share price leapt 38% to US$4.04 in the week following its quarterly results. Revenues came in 36% better than analyst models expected, at US$6.0m, although statutory losses were 14% larger than expected, at US$0.08 per share. This is an important time for investors, as they can track a company's performance in its report, look at what expert is forecasting for next year, and see if there has been any change to expectations for the business. 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 Pioneer Power Solutions

Taking into account the latest results, the current consensus from Pioneer Power Solutions' one analyst is for revenues of US$40.8m in 2022, which would reflect a substantial 96% increase on its sales over the past 12 months. Losses are predicted to fall substantially, shrinking 33% to US$0.23. Before this latest report, the consensus had been expecting revenues of US$39.8m and US$0.20 per share in losses. So it's pretty clear the analyst has mixed opinions on Pioneer Power Solutions even after this update; although they upped their revenue numbers, it came at the cost of a considerable increase in per-share losses.

It will come as a surprise to learn that the consensus price target rose 45% to US$12.00, with the analyst clearly more interested in growing revenue, even as losses intensify.

Of course, another way to look at these forecasts is to place them into context against the industry itself. For example, we noticed that Pioneer Power Solutions' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 145% growth to the end of 2022 on an annualised basis. That is well above its historical decline of 43% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 11% annually. Not only are Pioneer Power Solutions' revenues expected to improve, it seems that the analyst is also expecting it to grow faster than the wider industry.

The Bottom Line

The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at Pioneer Power Solutions. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business 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. We have analyst estimates for Pioneer Power Solutions going out as far as 2024, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 3 warning signs for Pioneer Power Solutions that you should be aware of.

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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.