ADS-TEC Energy PLC (NASDAQ:ADSE) Reported Earnings Last Week And Analysts Are Already Upgrading Their Estimates

Last week saw the newest yearly earnings release from ADS-TEC Energy PLC (NASDAQ:ADSE), an important milestone in the company's journey to build a stronger business. Revenues of €107m beat expectations by a respectable 4.2%, although statutory losses per share increased. ADS-TEC Energy lost €1.09, which was 65% more than what the analysts had included in their models. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for ADS-TEC Energy

Taking into account the latest results, the consensus forecast from ADS-TEC Energy's three analysts is for revenues of €192.2m in 2024. This reflects a huge 79% improvement in revenue compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 81% to €0.21. Before this earnings announcement, the analysts had been modelling revenues of €167.2m and losses of €0.35 per share in 2024. We can see there's definitely been a change in sentiment in this update, with the analysts administering a sizeable upgrade to this year's revenue estimates, while at the same time reducing their loss estimates.

The consensus price target rose 56% to US$14.00, with the analysts encouraged by the higher revenue and lower forecast losses for next year.

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. It's clear from the latest estimates that ADS-TEC Energy's rate of growth is expected to accelerate meaningfully, with the forecast 79% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 18% p.a. over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 7.7% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that ADS-TEC Energy is expected to grow much faster than its industry.

The Bottom Line

The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for ADS-TEC Energy going out to 2026, and you can see them free on our platform here..

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with ADS-TEC Energy (at least 1 which can't be ignored) , and understanding them should be part of your investment process.

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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.