Industry Analysts Just Made A Meaningful Upgrade To Their Excelerate Energy, Inc. (NYSE:EE) Revenue Forecasts
Excelerate Energy, Inc. (NYSE:EE) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects.
After the upgrade, the consensus from Excelerate Energy's three analysts is for revenues of US$2.0b in 2023, which would reflect an uneasy 19% decline in sales compared to the last year of performance. Per-share earnings are expected to surge 161% to US$1.33. Previously, the analysts had been modelling revenues of US$1.8b and earnings per share (EPS) of US$1.23 in 2023. The forecasts seem more optimistic now, with a nice gain to revenue and a small increase to earnings per share estimates.
Check out our latest analysis for Excelerate Energy
Although the analysts have upgraded their earnings estimates, there was no change to the consensus price target of US$30.25, suggesting that the forecast performance does not have a long term impact on the company's valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Excelerate Energy, with the most bullish analyst valuing it at US$33.00 and the most bearish at US$28.00 per share. Still, with such a tight range of estimates, it suggests the analysts have a pretty good idea of what they think the company is worth.
Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that sales are expected to reverse, with a forecast 19% annualised revenue decline to the end of 2023. That is a notable change from historical growth of 53% over the last three years. Yet aggregate analyst estimates for other companies in the industry suggest that industry revenues are forecast to decline 5.9% per year. So it's pretty clear that Excelerate Energy's revenues are expected to shrink faster than the wider industry.
The Bottom Line
The most important thing to take away from this upgrade is that analysts upgraded their earnings per share estimates for this year, expecting improving business conditions. Notably, analysts also upgraded their revenue estimates, with sales performing well although Excelerate Energy's revenue growth is expected to trail that of the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Excelerate Energy.
Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At Simply Wall St, we have a full range of analyst estimates for Excelerate Energy going out to 2025, and you can see them free on our platform here..
Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies 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.
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