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Earnings Update: Here's Why Analysts Just Lifted Their Aemetis, Inc. Price Target To US$2.25

Simply Wall St

Aemetis, Inc. (NASDAQ:AMTX) investors will be delighted, with the company turning in some strong numbers with its latest results. Revenues were better than expected, with US$57m in sales some 20% ahead of forecasts. The company still lost US$0.31 per share, although the losses were marginally smaller than analysts expected. Following the result, 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. We thought readers would find it interesting to see analysts' latest post-earnings forecasts for next year.

See our latest analysis for Aemetis

NasdaqGM:AMTX Past and Future Earnings, November 18th 2019
NasdaqGM:AMTX Past and Future Earnings, November 18th 2019

Taking into account the latest results, the latest consensus from Aemetis's lone analyst is for revenues of US$219.9m in 2020, which would reflect a decent 17% improvement in sales compared to the last 12 months. Prior to the latest earnings, analysts were forecasting revenues of US$201.2m in 2020, and did not provide an EPS estimate. It looks like there's been a clear increase in sentiment after the latest results, given the modest lift to revenue estimates.

Additionally, the consensus price target for Aemetis 13% to US$2.25, showing a clear increase in optimism from the analysts involved.

It can also be useful to step back and take a broader view of how analyst forecasts compare to Aemetis's performance in recent years. One thing stands out from these estimates, which is that analysts are forecasting Aemetis to grow faster in the future than it has in the past, with revenues expected to grow 17%. If achieved, this would be a much better result than the 1.0% annual decline over the past five years. Compare this against analyst estimates for the wider market, which suggest that (in aggregate) market revenues are expected to grow 3.4% next year. So it looks like Aemetis is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The most important thing to take away from these updates is that analysts are definitely optimistic on the business, given that they've begun forecasting positive per-share earnings for next year. Pleasantly, analysts also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider market. There was also a nice increase in the price target, with analysts feeling that the intrinsic value of the business is improving.

We have estimates for Aemetis from one covering analyst, and you can see them free on our platform here.

You can also see whether Aemetis is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.