Dragonfly Energy Holdings Corp. (NASDAQ:DFLI) Analysts Are Cutting Their Estimates: Here's What You Need To Know

Dragonfly Energy Holdings Corp. (NASDAQ:DFLI) missed earnings with its latest quarterly results, disappointing overly-optimistic forecasters. Revenues missed expectations somewhat, coming in at US$13m, but statutory earnings fell catastrophically short, with a loss of US$0.22 some 44% larger than what the analysts had predicted. 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've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for Dragonfly Energy Holdings

After the latest results, the three analysts covering Dragonfly Energy Holdings are now predicting revenues of US$58.2m in 2024. If met, this would reflect a notable 12% improvement in revenue compared to the last 12 months. Per-share losses are expected to explode, reaching US$0.73 per share. Before this earnings announcement, the analysts had been modelling revenues of US$65.6m and losses of US$0.55 per share in 2024. There's been a definite change in sentiment in this update, with the analysts administering a notable cut to next year's revenue estimates, while at the same time increasing their loss per share forecasts.

The consensus price target fell 6.5% to US$1.81, with the analysts clearly concerned about the company following the weaker revenue and earnings outlook. 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 Dragonfly Energy Holdings at US$3.00 per share, while the most bearish prices it at US$1.25. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Dragonfly Energy Holdings' past performance and to peers in the same industry. For example, we noticed that Dragonfly Energy Holdings' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 25% growth to the end of 2024 on an annualised basis. That is well above its historical decline of 38% a year over the past year. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 8.0% annually. So it looks like Dragonfly Energy Holdings is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at Dragonfly Energy Holdings. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Dragonfly Energy Holdings' 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. We have forecasts for Dragonfly Energy Holdings going out to 2026, and you can see them free on our platform here.

It is also worth noting that we have found 5 warning signs for Dragonfly Energy Holdings (1 can't be ignored!) that you need to take into consideration.

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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.