Blink Charging Co. (NASDAQ:BLNK) Analysts Just Trimmed Their Revenue Forecasts By 13%

The analysts covering Blink Charging Co. (NASDAQ:BLNK) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for next year. Revenue estimates were cut sharply as analysts signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well.

Following the downgrade, the latest consensus from Blink Charging's seven analysts is for revenues of US$170m in 2025, which would reflect a substantial 22% improvement in sales compared to the last 12 months. Losses are predicted to fall substantially, shrinking 69% to US$0.44 per share. However, before this estimates update, the consensus had been expecting revenues of US$196m and US$0.42 per share in losses. Ergo, there's been a clear change in sentiment, with the analysts administering a notable cut to next year's revenue estimates, while at the same time increasing their loss per share forecasts.

See our latest analysis for Blink Charging

The consensus price target fell 19% to US$4.06, with the analysts clearly concerned about the company following the weaker revenue and earnings outlook.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Blink Charging's revenue growth is expected to slow, with the forecast 18% annualised growth rate until the end of 2025 being well below the historical 63% 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) 8.6% per year. So it's pretty clear that, while Blink Charging's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most important thing to take away is that analysts increased their loss per share estimates for next year. Unfortunately, analysts also downgraded their revenue estimates, although our data indicates revenues are expected to perform better than the wider market. Furthermore, there was a cut to the price target, suggesting that the latest news has led to more pessimism about the intrinsic value of the business. Overall, given the drastic downgrade to next year's forecasts, we'd be feeling a little more wary of Blink Charging going forwards.

So things certainly aren't looking great, and you should also know that we've spotted some potential warning signs with Blink Charging, including major dilution from new stock issuance in the past year. Learn more, and discover the 3 other concerns we've identified, for free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership.

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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.