Analysts Are Updating Their Aker Carbon Capture ASA (OB:ACC) Estimates After Its Yearly Results

Aker Carbon Capture ASA (OB:ACC) defied analyst predictions to release its full-year results, which were ahead of market expectations. Aker Carbon Capture beat expectations with revenues of kr1.6b arriving 5.2% ahead of forecasts. The company also reported a statutory loss of kr0.28, 3.9% smaller than was 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for Aker Carbon Capture

Taking into account the latest results, the most recent consensus for Aker Carbon Capture from nine analysts is for revenues of kr1.82b in 2024. If met, it would imply a meaningful 13% increase on its revenue over the past 12 months. The loss per share is expected to ameliorate slightly, reducing to kr0.26. Before this latest report, the consensus had been expecting revenues of kr1.84b and kr0.26 per share in losses. So it's pretty clear consensus is mixed on Aker Carbon Capture after the new consensus numbers; while the analysts held their revenue numbers steady, they also administered a pronounced increase to per-share loss expectations.

As a result, there was no major change to the consensus price target of kr14.22, with the analysts implicitly confirming that the business looks to be performing in line with expectations, despite higher forecast losses. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Aker Carbon Capture, with the most bullish analyst valuing it at kr20.00 and the most bearish at kr7.00 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

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. We would highlight that Aker Carbon Capture's revenue growth is expected to slow, with the forecast 13% annualised growth rate until the end of 2024 being well below the historical 64% p.a. growth over the last three years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 5.2% per year. Even after the forecast slowdown in growth, it seems obvious that Aker Carbon Capture is also expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts increased their loss per share estimates for next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at kr14.22, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Aker Carbon Capture. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Aker Carbon Capture going out to 2026, and you can see them free on our platform here..

However, before you get too enthused, we've discovered 1 warning sign for Aker Carbon Capture that 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.