US$4.00 - That's What Analysts Think Fuel Tech, Inc. (NASDAQ:FTEK) Is Worth After These Results

Fuel Tech, Inc. (NASDAQ:FTEK) shareholders are probably feeling a little disappointed, since its shares fell 2.9% to US$1.00 in the week after its latest quarterly results. Revenues came in at US$7.0m, an impressive 21% ahead of analyst forecasts. This is an important time for investors, as they can track a company's performance in its report, look at what expert is forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether the analyst has changed their earnings models, following these results.

Check out our latest analysis for Fuel Tech

After the latest results, the one analyst covering Fuel Tech are now predicting revenues of US$28.8m in 2024. If met, this would reflect a decent 9.3% improvement in revenue compared to the last 12 months. Losses are forecast to balloon 179% to US$0.02 per share. Before this earnings announcement, the analyst had been modelling revenues of US$27.8m and losses of US$0.03 per share in 2024. So it seems there's been a definite increase in optimism about Fuel Tech's future following the latest consensus numbers, with a very promising decrease in the loss per share forecasts in particular.

It will come as no surprise to learn thatthe analyst has increased their price target for Fuel Tech 100% to US$4.00on the back of these upgrades.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. For example, we noticed that Fuel Tech's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 19% growth to the end of 2024 on an annualised basis. That is well above its historical decline of 5.4% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 6.6% annually. Not only are Fuel Tech's revenues expected to improve, it seems that the analyst is also expecting it to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analyst reconfirmed their loss per share estimates for next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analyst believes the intrinsic value of the business is likely to improve over time.

With that in mind, we wouldn't be too quick to come to a conclusion on Fuel Tech. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

You still need to take note of risks, for example - Fuel Tech has 1 warning sign we think you should be aware 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.