Earnings Beat: New Fortress Energy Inc. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

New Fortress Energy Inc. (NASDAQ:NFE) investors will be delighted, with the company turning in some strong numbers with its latest results. The company beat expectations with revenues of US$2.4b arriving 2.6% ahead of forecasts. Statutory earnings per share (EPS) were US$2.65, 6.3% ahead of estimates. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for New Fortress Energy

Following the latest results, New Fortress Energy's six analysts are now forecasting revenues of US$3.73b in 2024. This would be a substantial 54% improvement in revenue compared to the last 12 months. Per-share earnings are expected to jump 73% to US$4.63. In the lead-up to this report, the analysts had been modelling revenues of US$3.69b and earnings per share (EPS) of US$5.04 in 2024. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

It might be a surprise to learn that the consensus price target was broadly unchanged at US$44.00, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic New Fortress Energy analyst has a price target of US$60.00 per share, while the most pessimistic values it at US$32.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

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. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 54% growth on an annualised basis. That is in line with its 53% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 1.8% per year. So it's pretty clear that New Fortress Energy is forecast to grow substantially faster than its industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for New Fortress 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$44.00, 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 New Fortress Energy. Long-term earnings power is much more important than next year's profits. We have forecasts for New Fortress Energy going out to 2026, and you can see them free on our platform here.

Before you take the next step you should know about the 3 warning signs for New Fortress Energy that we have uncovered.

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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.