Yahoo Finance Ceres Power Holdings plc (LON:CWR) Just Released Its Annual Results And Analysts Are Updating Their Estimates
As you might know, Ceres Power Holdings plc (LON:CWR) recently reported its full-year numbers. The results were mixed overall, with revenues slightly ahead of analyst estimates at UK£22m. Statutory losses by contrast were 6.7% larger than predictions at UK£0.28 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Ceres Power Holdings after the latest results.
See our latest analysis for Ceres Power Holdings
Taking into account the latest results, the consensus forecast from Ceres Power Holdings' 14 analysts is for revenues of UK£49.0m in 2024. This reflects a major 120% improvement in revenue compared to the last 12 months. Losses are predicted to fall substantially, shrinking 28% to UK£0.20. Yet prior to the latest earnings, the analysts had been forecasting revenues of UK£50.5m and losses of UK£0.20 per share in 2024. Overall it looks as though the analysts are negative in this update. Although revenue forecasts held steady, the consensus also made a modest increase to to its losses per share forecasts.
There was no major change to the consensus price target of UK£3.96, signalling that the business is performing roughly in line with expectations, despite lower earnings per share forecasts. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Ceres Power Holdings, with the most bullish analyst valuing it at UK£7.65 and the most bearish at UK£1.25 per share. We would probably assign less value to the analyst forecasts in this situation, because such a wide range of estimates could imply that the future of this business is difficult to value accurately. 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. The analysts are definitely expecting Ceres Power Holdings' growth to accelerate, with the forecast 120% annualised growth to the end of 2024 ranking favourably alongside historical growth of 9.3% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 18% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Ceres Power Holdings is expected to grow much faster than its industry.
The Bottom Line
The most important thing to take away is that the analysts increased their loss per share estimates for next year. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
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 forecasts for Ceres Power Holdings going out to 2026, and you can see them free on our platform here.
And what about risks? Every company has them, and we've spotted 2 warning signs for Ceres Power Holdings 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.
