Local Bounti Corporation (NYSE:LOCL) Consensus Forecasts Have Become A Little Darker Since Its Latest Report

As you might know, Local Bounti Corporation (NYSE:LOCL) last week released its latest quarterly, and things did not turn out so great for shareholders. It definitely looks like a negative result overall with revenues falling 20% short of analyst estimates at US$10m. Statutory losses were US$4.01 per share, 88% bigger than what the analysts expected. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for Local Bounti

After the latest results, the two analysts covering Local Bounti are now predicting revenues of US$80.9m in 2025. If met, this would reflect a huge 132% improvement in revenue compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 64% to US$6.16. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$94.6m and losses of US$5.16 per share in 2025. So there's been quite a change-up of views after the recent consensus updates, withthe analysts making a serious cut to their revenue outlook while also expecting losses per share to increase.

The average price target was broadly unchanged at US$8.00, perhaps implicitly signalling that the weaker earnings outlook is not expected to have a long-term impact on the valuation.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's clear from the latest estimates that Local Bounti's rate of growth is expected to accelerate meaningfully, with the forecast 96% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 66% p.a. 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 2.7% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Local Bounti to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts increased their loss per share estimates for next year. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. The consensus price target held steady at US$8.00, with the latest estimates not enough to have an impact on their price targets.

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 2026, which can be seen for free on our platform here.

You still need to take note of risks, for example - Local Bounti has 5 warning signs (and 2 which can't be ignored) we think 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.