Analysts Just Shaved Their Dragonfly Energy Holdings Corp. (NASDAQ:DFLI) Forecasts Dramatically
Today is shaping up negative for Dragonfly Energy Holdings Corp. (NASDAQ:DFLI) shareholders, with the analysts delivering a substantial negative revision to next year's forecasts. Both revenue and earnings per share (EPS) estimates were cut sharply as analysts factored in the latest outlook for the business, concluding that they were too optimistic previously.
Following the downgrade, the current consensus from Dragonfly Energy Holdings' four analysts is for revenues of US$87m in 2024 which - if met - would reflect a meaningful 17% increase on its sales over the past 12 months. Losses are predicted to fall substantially, shrinking 23% to US$0.63 per share. Yet before this consensus update, the analysts had been forecasting revenues of US$99m and losses of US$0.52 per share in 2024. Ergo, there's been a clear change in sentiment, with the analysts administering a notable cut to next year's revenue estimates, while at the same time increasing their loss per share forecasts.
See our latest analysis for Dragonfly Energy Holdings
Analysts lifted their price target 14% to US$5.25, implicitly signalling that lower earnings per share are not expected to have a longer-term impact on the stock's value.
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. We can infer from the latest estimates that forecasts expect a continuation of Dragonfly Energy Holdings'historical trends, as the 14% annualised revenue growth to the end of 2024 is roughly in line with the 13% annual revenue growth over the past three years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 8.3% annually. So although Dragonfly Energy Holdings is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.
The Bottom Line
The most important thing to note from this downgrade is that the consensus increased its forecast losses next year, suggesting all may not be well at Dragonfly Energy Holdings. While analysts did downgrade their revenue estimates, these forecasts still imply revenues will perform better than the wider market. The rising price target is a puzzle, but still - with a serious cut to next year's outlook, we wouldn't be surprised if investors were a bit wary of Dragonfly Energy Holdings.
So things certainly aren't looking great, and you should also know that we've spotted some potential warning signs with Dragonfly Energy Holdings, including a short cash runway. For more information, you can click here to discover this and the 4 other concerns we've identified.
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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.
