Earnings Miss: CES Energy Solutions Corp. Missed EPS By 5.0% And Analysts Are Revising Their Forecasts

CES Energy Solutions Corp. (TSE:CEU) shareholders are probably feeling a little disappointed, since its shares fell 3.5% to CA$6.00 in the week after its latest quarterly results. CES Energy Solutions beat revenue expectations by 2.4%, at CA$632m. Statutory earnings per share (EPS) came in at CA$0.19, some 5.0% short of analyst estimates. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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After the latest results, the eight analysts covering CES Energy Solutions are now predicting revenues of CA$2.45b in 2025. If met, this would reflect a satisfactory 2.0% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to accumulate 3.9% to CA$0.85. Yet prior to the latest earnings, the analysts had been anticipated revenues of CA$2.47b and earnings per share (EPS) of CA$0.89 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.

Check out our latest analysis for CES Energy Solutions

It might be a surprise to learn that the consensus price target fell 8.3% to CA$9.31, with the analysts clearly linking lower forecast earnings to the performance of the stock price. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on CES Energy Solutions, with the most bullish analyst valuing it at CA$11.75 and the most bearish at CA$8.00 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that CES Energy Solutions' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 2.7% growth on an annualised basis. This is compared to a historical growth rate of 21% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 10% per year. Factoring in the forecast slowdown in growth, it seems obvious that CES Energy Solutions is also expected to grow slower than other industry participants.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for CES Energy Solutions. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of CES Energy Solutions' future valuation.

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. At Simply Wall St, we have a full range of analyst estimates for CES Energy Solutions going out to 2027, and you can see them free on our platform here..

You still need to take note of risks, for example - CES Energy Solutions has 3 warning signs we think you should be aware of.

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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.