CA$5.00 - That's What Analysts Think Tidewater Renewables Ltd. (TSE:LCFS) Is Worth After These Results

As you might know, Tidewater Renewables Ltd. (TSE:LCFS) last week released its latest third-quarter, and things did not turn out so great for shareholders. It definitely looks like a negative result overall with revenues falling 11% short of analyst estimates at CA$62m. Statutory losses were CA$0.03 per share, 350% bigger than what the analysts expected. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Following the latest results, Tidewater Renewables' dual analysts are now forecasting revenues of CA$433.0m in 2026. This would be a huge 61% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to bounce 50% to CA$0.57. Before this earnings report, the analysts had been forecasting revenues of CA$408.0m and earnings per share (EPS) of CA$0.56 in 2026. There doesn't appear to have been a major change in sentiment following the results, other than the small increase to revenue estimates.

Check out our latest analysis for Tidewater Renewables

The analysts increased their price target 19% to CA$5.00, perhaps signalling that higher revenues are a strong leading indicator for Tidewater Renewables's valuation.

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. We can infer from the latest estimates that forecasts expect a continuation of Tidewater Renewables'historical trends, as the 46% annualised revenue growth to the end of 2026 is roughly in line with the 55% annual growth over the past three years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 3.2% annually. So although Tidewater Renewables is expected to maintain its revenue growth rate, it's definitely expected 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 the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, they also upgraded their revenue estimates, and are forecasting them 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 in mind, we wouldn't be too quick to come to a conclusion on Tidewater Renewables. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Tidewater Renewables , and understanding it 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.