Gauzy Ltd. (NASDAQ:GAUZ) Just Reported And Analysts Have Been Cutting Their Estimates

Gauzy Ltd. (NASDAQ:GAUZ) just released its latest quarterly report and things are not looking great. It was not a great statutory result, with revenues coming in 31% lower than the analysts predicted. Unsurprisingly, earnings also fell seriously short of forecasts, turning into a per-share loss of US$0.57. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Taking into account the latest results, the most recent consensus for Gauzy from twin analysts is for revenues of US$121.7m in 2025. If met, it would imply a huge 26% increase on its revenue over the past 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 37% to US$1.29. Before this earnings announcement, the analysts had been modelling revenues of US$130.4m and losses of US$1.09 per share in 2025. While this year's revenue estimates dropped there was also a considerable increase in loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.

See our latest analysis for Gauzy

The average price target fell 25% to US$9.00, implicitly signalling that lower earnings per share are a leading indicator for Gauzy's valuation.

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 clear from the latest estimates that Gauzy's rate of growth is expected to accelerate meaningfully, with the forecast 58% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 7.9% over the past year. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 8.2% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Gauzy to grow faster than the wider industry.

The Bottom Line

The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at Gauzy. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that in mind, we wouldn't be too quick to come to a conclusion on Gauzy. Long-term earnings power is much more important than next year's profits. We have analyst estimates for Gauzy going out as far as 2027, and you can see them free on our platform here.

Even so, be aware that Gauzy is showing 2 warning signs in our investment analysis , 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.