Blink Charging Co. (NASDAQ:BLNK) defied analyst predictions to release its third-quarter results, which were ahead of market expectations. Revenues and losses per share both beat expectations, with revenues of US$764k leading estimates by 6.8%. Losses were somewhat smaller than analysts expected, coming in at US$0.10 per share. This is an important time for investors, as they can track a company's performance in its report, look at what top analysts are forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent forecasts to see whether analysts have changed their earnings models, following these results.
After the latest results, the dual analysts covering Blink Charging are now predicting revenues of US$7.27m in 2020. If met, this would reflect a major 144% improvement in sales compared to the last 12 months. Losses are expected to increase slightly, to US$0.30 per share. Before this latest report, the consensus had been expecting revenues of US$7.55m and US$0.29 per share in losses. While revenue forecasts have been revised downwards, analysts look to have become more optimistic on the company's earnings power, given the to earnings per share forecasts.
Another way to assess these estimates is by comparing them to past performance, and seeing whether analysts are more or less bullish relative to other companies in the market. One thing stands out from these estimates, which is that analysts are forecasting Blink Charging to grow faster in the future than it has in the past, with revenues expected to grow 144%. If achieved, this would be a much better result than the 5.9% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the market are forecast to see their revenue grow 5.8% per year. Although Blink Charging's revenues are expected to improve, it seems that analysts are also expecting it to grow faster than the wider market.
The Bottom Line
The highlight for us was that the consensus reduced its estimated losses next year, perhaps suggesting Blink Charging is moving incrementally towards profitability. Unfortunately analysts also downgraded their revenue estimates, although industry data suggests that Blink Charging's revenues are expected to grow faster than the wider market. We previously had no consensus price target, which could suggest the business has reached a point where analysts feel comfortably deriving a valuation for it.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Blink Charging going out as far as 2023, and you can see them free on our platform here.
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