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

Profire Energy, Inc. (NASDAQ:PFIE) just released its third-quarter report and things are looking bullish. It was overall a positive result, with revenues beating expectations by 3.1% to hit US$15m. Profire Energy also reported a statutory profit of US$0.04, which was an impressive 33% above what the analysts had forecast. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for Profire Energy

Following the latest results, Profire Energy's two analysts are now forecasting revenues of US$62.9m in 2024. This would be a decent 8.8% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to sink 16% to US$0.17 in the same period. In the lead-up to this report, the analysts had been modelling revenues of US$62.3m and earnings per share (EPS) of US$0.20 in 2024. So there's definitely been a decline in sentiment after the latest results, noting the substantial drop in new EPS forecasts.

Despite cutting their earnings forecasts,the analysts have lifted their price target 15% to US$3.75, suggesting that these impacts are not expected to weigh on the stock's value in the long term.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's clear from the latest estimates that Profire Energy's rate of growth is expected to accelerate meaningfully, with the forecast 7.0% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 3.1% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 9.1% annually. So it's clear that despite the acceleration in growth, Profire Energy is expected to grow meaningfully slower than the industry average.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Profire Energy. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Profire Energy's revenue is expected to perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for Profire Energy going out as far as 2025, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 3 warning signs for Profire Energy (of which 2 are a bit unpleasant!) you should know about.

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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.