Aker Carbon Capture ASA (OB:ACC) Analysts Just Slashed This Year's Revenue Estimates By 12%

The analysts covering Aker Carbon Capture ASA (OB:ACC) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. Revenue estimates were cut sharply as analysts signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well. At kr15.40, shares are up 7.5% in the past 7 days. It will be interesting to see if this downgrade motivates investors to start selling their holdings.

After this downgrade, Aker Carbon Capture's nine analysts are now forecasting revenues of kr1.4b in 2023. This would be a sizeable 33% improvement in sales compared to the last 12 months. Losses are expected to be contained, narrowing 11% per share from last year to kr0.28 per share. However, before this estimates update, the consensus had been expecting revenues of kr1.6b and kr0.28 per share in losses. So there's definitely been a change in sentiment in this update, with the analysts administering a substantial haircut to this year's revenue estimates, while at the same time holding losses per share steady.

See our latest analysis for Aker Carbon Capture

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The period to the end of 2023 brings more of the same, according to the analysts, with revenue forecast to display 78% growth on an annualised basis. That is in line with its 82% annual growth over the past year. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 38% annually. So it's pretty clear that Aker Carbon Capture is forecast to grow substantially faster than its industry.

The Bottom Line

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 Aker Carbon Capture after today.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Aker Carbon Capture going out to 2025, and you can see them 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.