Analysts Have Lowered Expectations For Gogoro Inc. (NASDAQ:GGR) After Its Latest Results

Investors in Gogoro Inc. (NASDAQ:GGR) had a good week, as its shares rose 7.9% to close at US$4.65 following the release of its annual results. It looks like the results were pretty good overall. While revenues of US$383m were in line with analyst predictions, statutory losses were much smaller than expected, with Gogoro losing US$0.45 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Gogoro

Following the latest results, Gogoro's three analysts are now forecasting revenues of US$439.2m in 2023. This would be a solid 15% improvement in sales compared to the last 12 months. Losses are expected to increase slightly, to US$0.44 per share. Before this latest report, the consensus had been expecting revenues of US$476.2m and US$0.34 per share in losses. So it's pretty clear the analysts have mixed opinions on Gogoro after this update; revenues were downgraded and per-share losses expected to increase.

There was no major change to the consensus price target of US$5.60, signalling that the business is performing roughly in line with expectations, despite lower earnings per share forecasts. 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 Gogoro, with the most bullish analyst valuing it at US$6.50 and the most bearish at US$4.30 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Gogoro shareholders.

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. One thing stands out from these estimates, which is that Gogoro is forecast to grow faster in the future than it has in the past, with revenues expected to display 15% annualised growth until the end of 2023. If achieved, this would be a much better result than the 0.01% annual decline over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 18% per year. Although Gogoro's revenues are expected to improve, it seems that the analysts are still bearish on the business, forecasting it to grow slower than the broader industry.

The Bottom Line

The most important thing to take away is that the analysts increased their loss per share estimates for next year. On the negative side, they also downgraded their revenue estimates, and forecasts imply revenues will perform worse 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 forecasts for Gogoro going out to 2025, and you can see them free on our platform here.

Plus, you should also learn about the 1 warning sign we've spotted with Gogoro .

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.