Results: Solaris Energy Infrastructure, Inc. Beat Earnings Expectations And Analysts Now Have New Forecasts

Shareholders will be ecstatic, with their stake up 20% over the past week following Solaris Energy Infrastructure, Inc.'s (NYSE:SEI) latest yearly results. It looks like a credible result overall - although revenues of US$313m were what the analysts expected, Solaris Energy Infrastructure surprised by delivering a (statutory) profit of US$0.50 per share, an impressive 39% above what was forecast. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are 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 three analysts is for revenues of US$516.5m in 2025. This would reflect a substantial 65% increase on its revenue over the past 12 months. Per-share earnings are expected to surge 147% to US$0.96. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$495.0m and earnings per share (EPS) of US$0.92 in 2025. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.

It will come as no surprise to learn that the analysts have increased their price target for Solaris Energy Infrastructure 10% to US$43.75on the back of these upgrades. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Solaris Energy Infrastructure, with the most bullish analyst valuing it at US$50.00 and the most bearish at US$36.00 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Solaris Energy Infrastructure shareholders.

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 analysts are definitely expecting Solaris Energy Infrastructure's growth to accelerate, with the forecast 65% annualised growth to the end of 2025 ranking favourably alongside historical growth of 16% 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 4.2% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Solaris Energy Infrastructure to grow faster than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Solaris Energy Infrastructure following these results. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Solaris Energy Infrastructure analysts - going out to 2027, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 4 warning signs for Solaris Energy Infrastructure you should be aware of, and 2 of them don't sit too well with us.

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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.