Aker Carbon Capture ASA (OB:ACC) Just Reported Yearly Earnings: Have Analysts Changed Their Mind On The Stock?

Last week, you might have seen that Aker Carbon Capture ASA (OB:ACC) released its full-year result to the market. The early response was not positive, with shares down 4.8% to kr17.11 in the past week. Overall the results were a little better than the analysts were expecting, with revenues beating forecasts by 3.4%to hit kr363m. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Aker Carbon Capture

Following the latest results, Aker Carbon Capture's nine analysts are now forecasting revenues of kr875.8m in 2022. This would be a substantial 141% improvement in sales compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 32% to kr0.22. Before this latest report, the consensus had been expecting revenues of kr921.2m and kr0.22 per share in losses.

The consensus price target was broadly unchanged at kr25.00, implying that the business is performing roughly in line with expectations, despite a downwards adjustment to forecast sales next year. 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. Currently, the most bullish analyst values Aker Carbon Capture at kr40.00 per share, while the most bearish prices it at kr12.00. So we wouldn't be assigning too much credibility to analyst price targets in this case, because there are clearly some widely different views on what kind of performance this business can generate. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business.

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 Aker Carbon Capture's revenue growth will slow down substantially, with revenues to the end of 2022 expected to display 141% growth on an annualised basis. This is compared to a historical growth rate of 1,049% over the past year. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 18% per year. So it's pretty clear that, while Aker Carbon Capture's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. They also downgraded their revenue estimates, although industry data suggests that Aker Carbon Capture's revenues are expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

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. We have estimates - from multiple Aker Carbon Capture analysts - going out to 2024, and you can see them free on our platform here.

Even so, be aware that Aker Carbon Capture is showing 3 warning signs in our investment analysis , you should know about...

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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.