Yahoo Finance Excelerate Energy, Inc. Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next
Excelerate Energy, Inc. (NYSE:EE) defied analyst predictions to release its first-quarter results, which were ahead of market expectations. The company beat forecasts, with revenue of US$200m, some 9.4% above estimates, and statutory earnings per share (EPS) coming in at US$0.24, 23% ahead of expectations. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Excelerate Energy after the latest results.
Check out our latest analysis for Excelerate Energy
After the latest results, the consensus from Excelerate Energy's six analysts is for revenues of US$821.6m in 2024, which would reflect a concerning 28% decline in revenue compared to the last year of performance. Statutory earnings per share are predicted to increase 2.4% to US$1.20. Before this earnings report, the analysts had been forecasting revenues of US$869.8m and earnings per share (EPS) of US$1.09 in 2024. While revenue forecasts have been revised downwards, the analysts look to have become more optimistic on the company's cost base, given the solid gain to to the earnings per share numbers.
The consensus has made no major changes to the price target of US$22.00, suggesting the forecast improvement in earnings is expected to offset the decline in revenues next year. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Excelerate Energy at US$26.00 per share, while the most bearish prices it at US$18.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Excelerate Energy's past performance and to peers in the same industry. One thing that stands out from these estimates is that shrinking revenues are expected to moderate over the period ending 2024 compared to the historical decline of 45% per annum over the past year. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 2.1% per year. So it's pretty clear that, while it does have declining revenues, the analysts also expect Excelerate Energy to suffer worse than the wider industry.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Excelerate Energy following these results. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. Still, earnings per share are more important to value creation for shareholders. The consensus price target held steady at US$22.00, with the latest estimates not enough to have an impact on their price targets.
With that in mind, we wouldn't be too quick to come to a conclusion on Excelerate Energy. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Excelerate Energy analysts - going out to 2026, and you can see them free on our platform here.
We also provide an overview of the Excelerate Energy Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.
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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.
