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.
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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.