US$6.00: That's What Analysts Think Eos Energy Enterprises, Inc. (NASDAQ:EOSE) Is Worth After Its Latest Results

Shareholders of Eos Energy Enterprises, Inc. (NASDAQ:EOSE) will be pleased this week, given that the stock price is up 12% to US$1.11 following its latest yearly results. The results look positive overall; while revenues of US$16m were in line with analyst predictions, statutory losses were 6.9% smaller than expected, with Eos Energy Enterprises losing US$1.81 per share. 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.

View our latest analysis for Eos Energy Enterprises

Taking into account the latest results, the most recent consensus for Eos Energy Enterprises from seven analysts is for revenues of US$125.9m in 2024. If met, it would imply a sizeable 669% increase on its revenue over the past 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 38% to US$0.70. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$130.6m and losses of US$0.76 per share in 2024. It looks like there's been a modest increase in sentiment in the recent updates, with the analysts becoming a bit more optimistic in their predictions for losses per share, even though the revenue numbers fell somewhat.

The analysts have cut their price target 21% to US$6.00per share, suggesting that the declining revenue was a more crucial indicator than the forecast reduction in losses. 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. There are some variant perceptions on Eos Energy Enterprises, with the most bullish analyst valuing it at US$13.00 and the most bearish at US$3.00 per share. 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. As a result it might not be a great idea to make decisions based on the consensus price target, which is after all just an average of this wide range of estimates.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Eos Energy Enterprises' rate of growth is expected to accelerate meaningfully, with the forecast 7x annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 66% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 8.1% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Eos Energy Enterprises to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. They also downgraded Eos Energy Enterprises' revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. With that said, earnings are more important to the long-term value of the business. 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.

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 Simply Wall St, we have a full range of analyst estimates for Eos Energy Enterprises going out to 2026, and you can see them free on our platform here..

You still need to take note of risks, for example - Eos Energy Enterprises has 4 warning signs we think 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.