FTC Solar, Inc. (NASDAQ:FTCI) Analysts Just Slashed This Year's Estimates
The analysts covering FTC Solar, Inc. (NASDAQ:FTCI) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. Revenue and earnings per share (EPS) forecasts were both revised downwards, with analysts seeing grey clouds on the horizon.
Following the downgrade, the current consensus from FTC Solar's eight analysts is for revenues of US$197m in 2023 which - if met - would reflect a huge 73% increase on its sales over the past 12 months. The loss per share is anticipated to greatly reduce in the near future, narrowing 51% to US$0.35. However, before this estimates update, the consensus had been expecting revenues of US$254m and US$0.28 per share in losses. So there's been quite a change-up of views after the recent consensus updates, with the analysts making a serious cut to their revenue forecasts while also expecting losses per share to increase.
View our latest analysis for FTC Solar
The consensus price target fell 5.8% to US$4.48, implicitly signalling that lower earnings per share are a leading indicator for FTC Solar'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. For example, we noticed that FTC Solar's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 198% growth to the end of 2023 on an annualised basis. That is well above its historical decline of 55% a year over the past year. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 7.7% per year. So it looks like FTC Solar is expected to grow faster than its competitors, at least for a while.
The Bottom Line
The most important thing to take away is that analysts increased their loss per share estimates for this year. While analysts did downgrade their revenue estimates, these forecasts still imply revenues will perform better than the wider market. Given the scope of the downgrades, it would not be a surprise to see the market become more wary of the business.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for FTC Solar going out to 2025, and you can see them free on our platform here.
Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.
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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.
