Analyst Estimates: Here's What Brokers Think Of Ballard Power Systems Inc. (TSE:BLDP) After Its First-Quarter Report

It's been a good week for Ballard Power Systems Inc. (TSE:BLDP) shareholders, because the company has just released its latest first-quarter results, and the shares gained 5.9% to CA$1.80. Results look to have been somewhat negative - revenue fell 8.0% short of analyst estimates at US$15m, although statutory losses were somewhat better. The per-share loss was US$0.07, 29% smaller than the analysts were expecting prior to the result. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

We've discovered 2 warning signs about Ballard Power Systems. View them for free.

Taking into account the latest results, the consensus forecast from Ballard Power Systems' 13 analysts is for revenues of US$93.0m in 2025. This reflects a sizeable 32% improvement in revenue compared to the last 12 months. Losses are predicted to fall substantially, shrinking 64% to US$0.36. Before this earnings announcement, the analysts had been modelling revenues of US$98.9m and losses of US$0.40 per share in 2025. So there seems to have been a moderate uplift in analyst sentiment with the latest consensus release, given the upgrade to loss per share forecasts for this year.

View our latest analysis for Ballard Power Systems

There was no major change to the CA$1.47average price target, suggesting that the adjustments to revenue and earnings are not expected to have a long-term impact on the business. 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 Ballard Power Systems, with the most bullish analyst valuing it at CA$2.01 and the most bearish at CA$1.00 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. For example, we noticed that Ballard Power Systems' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 44% growth to the end of 2025 on an annualised basis. That is well above its historical decline of 6.9% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 21% per year. So it looks like Ballard Power Systems is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. The consensus price target held steady at CA$1.47, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Ballard Power Systems going out to 2027, and you can see them free on our platform here..

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with Ballard Power Systems , and understanding these should be part of your investment process.

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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.