Analysts Have Been Trimming Their Charge Enterprises, Inc. (NASDAQ:CRGE) Price Target After Its Latest Report

As you might know, Charge Enterprises, Inc. (NASDAQ:CRGE) recently reported its third-quarter numbers. Revenues of US$132m came in 8.0% below estimates, but statutory losses were slightly better than expected, at US$0.05 per share. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for Charge Enterprises

Following the recent earnings report, the consensus from twin analysts covering Charge Enterprises is for revenues of US$577.1m in 2024. This implies an uncomfortable 10% decline in revenue compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 63% to US$0.085. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$726.6m and losses of US$0.09 per share in 2024. So there's been quite a change-up of views after the recent consensus updates, withthe analysts making a serious cut to their revenue forecasts while also reducing the estimated losses the business will incur.

The consensus price target fell 21% to US$3.75, with the dip in revenue estimates clearly souring sentiment, despite the forecast reduction in losses.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 8.1% by the end of 2024. This indicates a significant reduction from annual growth of 49% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 2.3% per year. It's pretty clear that Charge Enterprises' revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. With that said, earnings are more important to the long-term value of the business. 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for Charge Enterprises going out as far as 2025, and you can see them free on our platform here.

Plus, you should also learn about the 4 warning signs we've spotted with Charge Enterprises (including 2 which are concerning) .

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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.