Local Bounti Corporation (NYSE:LOCL) just released its latest yearly report and things are not looking great. Revenues missed expectations somewhat, coming in at US$28m, but statutory earnings fell catastrophically short, with a loss of US$15.61 some 63% larger than what the analysts had predicted. The analysts 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for Local Bounti

Taking into account the latest results, the current consensus from Local Bounti's dual analysts is for revenues of US$61.7m in 2024. This would reflect a sizeable 124% increase on its revenue over the past 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 48% to US$7.83. Before this latest report, the consensus had been expecting revenues of US$71.0m and US$7.66 per share in losses. So there's been quite a change-up of views after the recent consensus updates, withthe analysts making a serious cut to their revenue outlook while also expecting losses per share to increase.

The average price target was broadly unchanged at US$8.00, perhaps implicitly signalling that the weaker earnings outlook is not expected to have a long-term impact on the valuation.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting Local Bounti's growth to accelerate, with the forecast 124% annualised growth to the end of 2024 ranking favourably alongside historical growth of 102% per annum over the past three years. Compare this with other companies in the same industry, which are forecast to grow their revenue 2.7% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Local Bounti 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 Local Bounti. They also downgraded Local Bounti's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. The consensus price target held steady at US$8.00, with the latest estimates not enough to have an impact on their price targets.

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 Local Bounti going out as far as 2026, and you can see them free on our platform here.

You still need to take note of risks, for example - Local Bounti has 4 warning signs (and 1 which is a bit unpleasant) we think you should know about.

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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.