Earnings Miss: Solaris Energy Infrastructure, Inc. Missed EPS And Analysts Are Revising Their Forecasts

Shareholders will be ecstatic, with their stake up 25% over the past week following Solaris Energy Infrastructure, Inc.'s (NYSE:SEI) latest quarterly results. Revenues came in at US$75m, in line with estimates, while Solaris Energy Infrastructure reported a statutory loss of US$0.04 per share, well short of prior analyst forecasts for a profit. Earnings are an important time for investors, as they can track a company's performance, look at what the analyst is 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 analyst is expecting for next year.

See our latest analysis for Solaris Energy Infrastructure

Taking into account the latest results, the current consensus from Solaris Energy Infrastructure's one analyst is for revenues of US$734.3m in 2025. This would reflect a huge 162% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to jump 143% to US$1.03. In the lead-up to this report, the analyst had been modelling revenues of US$640.2m and earnings per share (EPS) of US$0.94 in 2025. Sentiment certainly seems to have improved after the latest results, with a nice gain to revenue and a small increase to earnings per share estimates.

It will come as no surprise to learn that the analyst has increased their price target for Solaris Energy Infrastructure 24% to US$20.50on the back of these upgrades.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analyst is definitely expecting Solaris Energy Infrastructure's growth to accelerate, with the forecast 116% annualised growth to the end of 2025 ranking favourably alongside historical growth of 14% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 5.6% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Solaris Energy Infrastructure is expected to grow much faster than its industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Solaris Energy Infrastructure's earnings potential next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analyst believes the intrinsic value of the business is likely to improve over time.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2025, which can be seen for free on our platform here.

And what about risks? Every company has them, and we've spotted 4 warning signs for Solaris Energy Infrastructure (of which 1 is potentially serious!) you should know about.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.