As you might know, ADS-TEC Energy PLC (NASDAQ:ADSE) recently reported its yearly numbers. Revenues of €107m beat expectations by a respectable 4.2%, although statutory losses per share increased. ADS-TEC Energy lost €1.09, which was 65% more than what the analysts had included in their models. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Taking into account the latest results, the most recent consensus for ADS-TEC Energy from three analysts is for revenues of €192.2m in 2024. If met, it would imply a huge 79% increase on its revenue over the past 12 months. Losses are predicted to fall substantially, shrinking 81% to €0.21. Yet prior to the latest earnings, the analysts had been forecasting revenues of €167.2m and losses of €0.35 per share in 2024. We can see there's definitely been a change in sentiment in this update, with the analysts administering a sizeable upgrade to this year's revenue estimates, while at the same time reducing their loss estimates.
It will come as no surprise to learn thatthe analysts have increased their price target for ADS-TEC Energy 56% to US$14.00on the back of these upgrades.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's clear from the latest estimates that ADS-TEC Energy's rate of growth is expected to accelerate meaningfully, with the forecast 79% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 18% p.a. over the past three years. Compare this with other companies in the same industry, which are forecast to grow their revenue 7.7% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect ADS-TEC Energy to grow faster than the wider industry.
The Bottom Line
The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple ADS-TEC Energy analysts - going out to 2026, and you can see them free on our platform here.
It is also worth noting that we have found 2 warning signs for ADS-TEC Energy (1 is potentially serious!) that you need to take into consideration.
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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.