Results: CBAK Energy Technology, Inc. Exceeded Expectations And The Consensus Lifted Next Year's Outlook

Last week saw the newest third-quarter earnings release from CBAK Energy Technology, Inc. (NASDAQ:CBAT), an important milestone in the company's journey to build a stronger business. Revenues of 55% beat expectations by US$61m and was sufficient to generate a statutory profit of US$0.03 - a pleasant surprise given that the analyst was forecasting a loss! Earnings are an important time for investors, as they can track a company's performance, look at what the analyst is forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analyst is expecting for next year.

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Following the latest results, CBAK Energy Technology's single analyst are now forecasting revenues of US$342.8m in 2026. This would be a major 112% improvement in revenue compared to the last 12 months. CBAK Energy Technology is also expected to turn profitable, with statutory earnings of US$0.10 per share. Before this earnings report, the analyst had been forecasting revenues of US$251.0m and earnings per share (EPS) of US$0.08 in 2026. There has definitely been an improvement in perception after these results, with the analyst noticeably increasing both their earnings and revenue estimates.

View our latest analysis for CBAK Energy Technology

As a result, it might be a surprise to see thatthe analyst has cut their price target 25% to US$1.50, which could suggest the forecast improvement in performance is not expected to last.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analyst is definitely expecting CBAK Energy Technology's growth to accelerate, with the forecast 82% annualised growth to the end of 2026 ranking favourably alongside historical growth of 23% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 11% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analyst also expect CBAK Energy Technology to grow faster than the wider industry.

The Bottom Line

The most important thing here is that the analyst upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards CBAK Energy Technology following these results. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. The consensus price target fell measurably, with the analyst seemingly not reassured by the latest results, leading to a lower estimate of CBAK Energy Technology's future valuation.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

We don't want to rain on the parade too much, but we did also find 1 warning sign for CBAK Energy Technology that you need to be mindful of.

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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.