Blink Charging Co. (NASDAQ:BLNK) Consensus Forecasts Have Become A Little Darker Since Its Latest Report

The analysts might have been a bit too bullish on Blink Charging Co. (NASDAQ:BLNK), given that the company fell short of expectations when it released its quarterly results last week. Statutory earnings fell substantially short of expectations, with revenues of US$25m missing forecasts by 28%. Losses exploded, with a per-share loss of US$0.86 some 426% below prior forecasts. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Blink Charging after the latest results.

See our latest analysis for Blink Charging

After the latest results, the seven analysts covering Blink Charging are now predicting revenues of US$158.9m in 2025. If met, this would reflect a decent 15% improvement in revenue compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 68% to US$0.46. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$191.8m and losses of US$0.45 per share in 2025. So there's been quite a change-up of views after the recent consensus updates, withthe analysts making a serious cut to their revenue forecasts while also making no real change to the loss per share numbers.

The analysts have cut their price target 21% to US$3.94per share, signalling that the declining revenue and ongoing losses are contributing to the lower valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Blink Charging at US$8.00 per share, while the most bearish prices it at US$2.00. With such a wide range in price targets, analysts are almost certainly betting on widely divergent outcomes in the underlying business. As a result it might not be a great idea to make decisions based on the consensus price target, which is after all just an average of this wide range of estimates.

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 Blink Charging's revenue growth is expected to slow, with the forecast 11% 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) 8.8% per year. Even after the forecast slowdown in growth, it seems obvious that Blink Charging is also expected to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

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 Blink Charging going out to 2026, and you can see them free on our platform here..

And what about risks? Every company has them, and we've spotted 4 warning signs for Blink Charging (of which 1 can't be ignored!) you should know about.

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.