Celebrations may be in order for Clean Energy Fuels Corp. (NASDAQ:CLNE) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects.
Following the upgrade, the latest consensus from Clean Energy Fuels' seven analysts is for revenues of US$450m in 2022, which would reflect a huge 72% improvement in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing US$398m of revenue in 2022. It looks like there's been a clear increase in optimism around Clean Energy Fuels, given the nice increase in revenue forecasts.
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. For example, we noticed that Clean Energy Fuels' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 106% growth to the end of 2022 on an annualised basis. That is well above its historical decline of 7.7% 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 decline 2.8% per year. So although Clean Energy Fuels is expected to return to growth, it's also expected to grow revenues during a time when the wider industry is estimated to see revenue decline.
The Bottom Line
The highlight for us was that analysts increased their revenue forecasts for Clean Energy Fuels this year. Analysts also expect revenues to perform better than the wider market. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Clean Energy Fuels.
That's a pretty serious upgrade, but shareholders might be even more pleased to know that forecasts expect Clean Energy Fuels to be able to reach break-even within the next few years. For more information, you can click through to our free platform to learn more about these forecasts.
Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.
What are the risks and opportunities for Clean Energy Fuels?
Trading at 88.5% below our estimate of its fair value
Revenue is forecast to grow 12.71% per year
Currently unprofitable and not forecast to become profitable over the next 3 years
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