Cloudberry Clean Energy ASA Just Reported A Surprise Loss: Here's What Analysts Think Will Happen Next

It's been a good week for Cloudberry Clean Energy ASA (OB:CLOUD) shareholders, because the company has just released its latest third-quarter results, and the shares gained 6.9% to kr10.90. Revenues fell 9.5% short of expectations, at kr74m. Earnings correspondingly dipped, with Cloudberry Clean Energy reporting a statutory loss of kr0.12 per share, whereas the analysts had previously modelled a profit in this period. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Cloudberry Clean Energy

Taking into account the latest results, the most recent consensus for Cloudberry Clean Energy from three analysts is for revenues of kr595.6m in 2024. If met, it would imply a decent 9.5% increase on its revenue over the past 12 months. Statutory earnings per share are expected to crater 41% to kr0.90 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr593.7m and earnings per share (EPS) of kr1.02 in 2024. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a substantial drop in EPS estimates.

It might be a surprise to learn that the consensus price target was broadly unchanged at kr13.88, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Cloudberry Clean Energy at kr15.00 per share, while the most bearish prices it at kr12.00. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that Cloudberry Clean Energy's revenue growth is expected to slow, with the forecast 7.5% annualised growth rate until the end of 2024 being well below the historical 87% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 23% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Cloudberry Clean Energy.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Cloudberry Clean Energy. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Cloudberry Clean Energy's revenue is expected to perform worse than the wider industry. The consensus price target held steady at kr13.88, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Cloudberry Clean Energy going out to 2025, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 2 warning signs for Cloudberry Clean Energy 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.