Shareholders will be ecstatic, with their stake up 68% over the past week following Sunworks, Inc.'s (NASDAQ:SUNW) latest second-quarter results. The results were mixed overall, with revenues slightly ahead of analyst estimates at US$36m. Statutory losses by contrast were 7.0% larger than predictions at US$0.23 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Following the latest results, Sunworks' two analysts are now forecasting revenues of US$149.2m in 2022. This would be a notable 14% improvement in sales compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 37% to US$0.68. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$140.4m and losses of US$0.75 per share in 2022. 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 both revenues and losses per share.
It will come as no surprise to learn thatthe analysts have increased their price target for Sunworks 23% to US$4.00on the back of these upgrades.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analysts are definitely expecting Sunworks' growth to accelerate, with the forecast 31% annualised growth to the end of 2022 ranking favourably alongside historical growth of 4.9% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 12% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Sunworks is expected to grow much faster than its industry.
The Bottom Line
The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. Happily, they also upgraded their revenue estimates, and are forecasting revenues to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Sunworks going out as far as 2023, and you can see them free on our platform here.
Even so, be aware that Sunworks is showing 4 warning signs in our investment analysis , and 1 of those is significant...
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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.
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