Analysts Just Made A Major Revision To Their New Fortress Energy Inc. (NASDAQ:NFE) Revenue Forecasts

Today is shaping up negative for New Fortress Energy Inc. (NASDAQ:NFE) shareholders, with the analysts delivering a substantial negative revision to this year's forecasts. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.

Following the downgrade, the latest consensus from New Fortress Energy's five analysts is for revenues of US$2.1b in 2022, which would reflect a major 23% improvement in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing US$2.4b of revenue in 2022. It looks like forecasts have become a fair bit less optimistic on New Fortress Energy, given the measurable cut to revenue estimates.

See our latest analysis for New Fortress Energy

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the New Fortress Energy's past performance and to peers in the same industry. We would highlight that New Fortress Energy's revenue growth is expected to slow, with the forecast 32% annualised growth rate until the end of 2022 being well below the historical 83% p.a. growth over the last three years. Compare this with other companies in the same industry, which are forecast to see a revenue decline of 3.2% annually. Factoring in the forecast slowdown in growth, it's pretty clear that New Fortress Energy is still expected to grow faster than the wider industry.

The Bottom Line

The clear low-light was that analysts slashing their revenue forecasts for New Fortress Energy this year. They're also forecasting for revenues to perform better than companies in the wider market. Often, one downgrade can set off a daisy-chain of cuts, especially if an industry is in decline. So we wouldn't be surprised if the market became a lot more cautious on New Fortress Energy after today.

So things certainly aren't looking great, and you should also know that we've spotted some potential warning signs with New Fortress Energy, including concerns around earnings quality. For more information, you can click here to discover this and the 1 other flag we've identified.

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