The EVgo, Inc. (NASDAQ:EVGO) Third-Quarter Results Are Out And Analysts Have Published New Forecasts

A week ago, EVgo, Inc. (NASDAQ:EVGO) came out with a strong set of third-quarter numbers that could potentially lead to a re-rate of the stock. EVgo beat expectations with revenues of US$68m arriving 2.4% ahead of forecasts. The company also reported a statutory loss of US$0.11, 2.9% smaller than was expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for EVgo

Taking into account the latest results, the consensus forecast from EVgo's 13 analysts is for revenues of US$361.2m in 2025. This reflects a sizeable 51% improvement in revenue compared to the last 12 months. Losses are supposed to decline, shrinking 19% from last year to US$0.34. Before this latest report, the consensus had been expecting revenues of US$361.6m and US$0.35 per share in losses. So there seems to have been a moderate uplift in analyst sentiment with the latest consensus release, given the upgrade to loss per share forecasts for next year.

There's been no major changes to the consensus price target of US$8.00, suggesting that reduced loss estimates are not enough to have a long-term positive impact on the stock's valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on EVgo, with the most bullish analyst valuing it at US$12.00 and the most bearish at US$3.50 per share. With such a wide range in price targets, analysts are almost certainly betting on widely divergent outcomes in the underlying business. As a result it might not be a great idea to make decisions based on the consensus price target, which is after all just an average of this wide range of estimates.

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. It's pretty clear that there is an expectation that EVgo's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 39% growth on an annualised basis. This is compared to a historical growth rate of 64% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 4.7% annually. So it's pretty clear that, while EVgo's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. 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$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 Simply Wall St, we have a full range of analyst estimates for EVgo going out to 2026, and you can see them free on our platform here..

Don't forget that there may still be risks. For instance, we've identified 2 warning signs for EVgo (1 shouldn't be ignored) you should be aware of.

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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.