Analyst Estimates: Here's What Brokers Think Of Bloom Energy Corporation (NYSE:BE) After Its Second-Quarter Report

Bloom Energy Corporation (NYSE:BE) shareholders are probably feeling a little disappointed, since its shares fell 2.5% to US$11.49 in the week after its latest quarterly results. The results don't look great, especially considering that statutory losses grew 78% toUS$0.27 per share. Revenues of US$336m did beat expectations by 9.6%, but it looks like a bit of a cold comfort. 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 Bloom Energy after the latest results.

View our latest analysis for Bloom Energy

Taking into account the latest results, the consensus forecast from Bloom Energy's 27 analysts is for revenues of US$1.47b in 2024. This reflects a solid 11% improvement in revenue compared to the last 12 months. Losses are predicted to fall substantially, shrinking 79% to US$0.26. Before this earnings announcement, the analysts had been modelling revenues of US$1.46b and losses of US$0.24 per share in 2024. So it's pretty clear consensus is mixed on Bloom Energy after the new consensus numbers; while the analysts held their revenue numbers steady, they also administered a moderate increase in per-share loss expectations.

The consensus price target held steady at US$16.25, seemingly implying that the higher forecast losses are not expected to have a long term impact on the company's valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Bloom Energy analyst has a price target of US$25.00 per share, while the most pessimistic values it at US$9.00. 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.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Bloom Energy's past performance and to peers in the same industry. It's clear from the latest estimates that Bloom Energy's rate of growth is expected to accelerate meaningfully, with the forecast 23% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 16% 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 8.0% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Bloom Energy to grow faster than the wider industry.

The Bottom Line

The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at Bloom Energy. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at US$16.25, 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 Bloom Energy. Long-term earnings power is much more important than next year's profits. We have forecasts for Bloom Energy going out to 2026, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 3 warning signs for Bloom Energy that you need to be mindful of.

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.