What Does The Future Hold For Kolibri Global Energy Inc. (TSE:KEI)? These Analysts Have Been Cutting Their Estimates

Market forces rained on the parade of Kolibri Global Energy Inc. (TSE:KEI) shareholders today, when the analysts downgraded their forecasts for next year. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.

After this downgrade, Kolibri Global Energy's two analysts are now forecasting revenues of US$66m in 2024. This would be a substantial 40% improvement in sales compared to the last 12 months. Per-share earnings are expected to leap 47% to US$0.71. Previously, the analysts had been modelling revenues of US$76m and earnings per share (EPS) of US$0.71 in 2024. So there's been a clear change in analyst sentiment in the recent update, with the analysts making a measurable cut to revenues and reconfirming their earnings per share estimates.

See our latest analysis for Kolibri Global Energy

The consensus has reconfirmed its price target of CA$9.07, showing that the analysts don't expect weaker sales expectationsnext year to have a material impact on Kolibri Global Energy's market value.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Kolibri Global Energy's past performance and to peers in the same industry. It's clear from the latest estimates that Kolibri Global Energy's rate of growth is expected to accelerate meaningfully, with the forecast 31% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 20% p.a. 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 5.0% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Kolibri Global Energy to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with analysts reconfirming that earnings per share are expected to continue performing in line with their prior expectations. Unfortunately, analysts also downgraded their revenue estimates, although our data indicates revenues are expected to perform better than the wider market. Often, one downgrade can set off a daisy-chain of cuts, especially if an industry is in decline. So we wouldn't be surprised if the market became a lot more cautious on Kolibri Global Energy after today.

That said, the analysts might have good reason to be negative on Kolibri Global Energy, given its declining profit margins. Learn more, and discover the 1 other risk we've identified, for free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.

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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.