Bearish: Analysts Just Cut Their Cloudberry Clean Energy ASA (OB:CLOUD) Revenue and EPS estimates

Market forces rained on the parade of Cloudberry Clean Energy ASA (OB:CLOUD) shareholders today, when the analysts downgraded their forecasts for this year. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting the analysts have soured majorly on the business.

Following the downgrade, the most recent consensus for Cloudberry Clean Energy from its three analysts is for revenues of kr419m in 2024 which, if met, would be a substantial 26% increase on its sales over the past 12 months. Statutory earnings per share are supposed to plummet 73% to kr0.26 in the same period. Previously, the analysts had been modelling revenues of kr486m and earnings per share (EPS) of kr0.43 in 2024. It looks like analyst sentiment has declined substantially, with a substantial drop in revenue estimates and a pretty serious decline to earnings per share numbers as well.

See our latest analysis for Cloudberry Clean Energy

Despite the cuts to forecast earnings, there was no real change to the kr13.50 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that Cloudberry Clean Energy's revenue growth is expected to slow, with the forecast 26% annualised growth rate until the end of 2024 being well below the historical 80% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 24% annually. Factoring in the forecast slowdown in growth, it looks like Cloudberry Clean Energy is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing to take away is that analysts cut their earnings per share estimates, expecting a clear decline in business conditions. Lamentably, they also downgraded their sales forecasts, but the business is still expected to grow at roughly the same rate as the market itself. The lack of change in the price target is puzzling in light of the downgrade but, with a serious decline expected this year, we wouldn't be surprised if investors were a bit wary of Cloudberry Clean Energy.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Cloudberry Clean Energy analysts - going out to 2026, and you can see them free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.