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Fluence Energy, Inc. (NASDAQ:FLNC) just released its quarterly report and things are looking bullish. Revenues of US$536m were better than expected, some 13% ahead of forecasts. The company still lost a statutory US$0.20 per share, although the losses were 14% smaller than the analysts expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
View our latest analysis for Fluence Energy
After the latest results, the 20 analysts covering Fluence Energy are now predicting revenues of US$2.78b in 2024. If met, this would reflect a substantial 40% improvement in revenue compared to the last 12 months. Earnings are expected to improve, with Fluence Energy forecast to report a statutory profit of US$0.17 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$2.70b and earnings per share (EPS) of US$0.094 in 2024. So it seems there's been a definite increase in optimism about Fluence Energy's future following the latest results, with a massive increase in the earnings per share forecasts in particular.
Despite these upgrades,the analysts have not made any major changes to their price target of US$32.09, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. 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 Fluence Energy, with the most bullish analyst valuing it at US$44.00 and the most bearish at US$24.00 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Fluence Energy's past performance and to peers in the same industry. We would highlight that Fluence Energy's revenue growth is expected to slow, with the forecast 31% annualised growth rate until the end of 2024 being well below the historical 46% p.a. growth over the last three years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 7.7% per year. So it's pretty clear that, while Fluence Energy's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.