Earnings Update: Eos Energy Enterprises, Inc. (NASDAQ:EOSE) Just Reported Its Annual Results And Analysts Are Updating Their Forecasts

It's been a good week for Eos Energy Enterprises, Inc. (NASDAQ:EOSE) shareholders, because the company has just released its latest annual results, and the shares gained 5.3% to US$4.60. Revenues of US$16m beat expectations by a respectable 4.5%, although statutory losses per share increased. Eos Energy Enterprises lost US$4.55, which was 86% 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Eos Energy Enterprises after the latest results.

View our latest analysis for Eos Energy Enterprises

After the latest results, the eight analysts covering Eos Energy Enterprises are now predicting revenues of US$167.5m in 2025. If met, this would reflect a huge 973% improvement in revenue compared to the last 12 months. Losses are predicted to fall substantially, shrinking 90% to US$0.45. Before this earnings announcement, the analysts had been modelling revenues of US$167.2m and losses of US$0.49 per share in 2025. It looks like there's been a modest increase in sentiment in the recent updates, with the analysts becoming a bit more optimistic in their predictions for losses per share, even though the revenue numbers were unchanged.

There's been no major changes to the consensus price target of US$5.29, suggesting that reduced loss estimates are not enough to have a long-term positive impact on the stock's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Eos Energy Enterprises, with the most bullish analyst valuing it at US$7.00 and the most bearish at US$3.00 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

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 Eos Energy Enterprises' rate of growth is expected to accelerate meaningfully, with the forecast 10x annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 46% p.a. 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 8.3% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Eos Energy Enterprises is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at US$5.29, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Eos Energy Enterprises. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Eos Energy Enterprises going out to 2027, and you can see them free on our platform here..

You should always think about risks though. Case in point, we've spotted 3 warning signs for Eos Energy Enterprises you should be aware of, and 2 of them are significant.

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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.