Analysts made a financial statement on the annual report of the American Superconductor Corporation (NASDAQ: AMSC)
Shareholders of American Society of Superconductors (NASDAQ: AMSC) will rejoice this week, as the stock price is up 17% to US $ 17.54 following its latest annual results. American Superconductor reported revenue of US $ 87 million, as expected, but unfortunately also reported (statutory) losses of US $ 0.95 per share, slightly above expectations. Analysts usually update their forecasts with each earnings report, and we can judge from their estimates whether their view of the business has changed or if there are new concerns to consider. With that in mind, we’ve rounded up the latest statutory forecast to see what analysts expect for next year.
Based on the latest results, the consensus forecast of the three American Superconductor analysts is for 2022 revenue of US $ 109.9 million, which would reflect a significant improvement of 26% in sales from the 12 last months. Loss per share is expected to decline significantly in the near future, narrowing 24% to US $ 0.72. Yet before the latest results, analysts were forecasting revenues of $ 98.8 million and losses of $ 0.64 per share in 2022. So there has been a shift in perspective after recent updates to the report. consensus, analysts significantly increasing their revenues. forecasts while anticipating an increase in losses per share. It appears that revenue growth will not come without additional costs.
There have been no major changes to the consensus price target of US $ 27.33, with growing revenues seemingly enough to offset fears of growing losses. Sticking to a single price target can be unwise, however, as the consensus target is actually the average of analysts’ price targets. As a result, some investors like to look at the range of estimates to see if there are any differing opinions on the valuation of the company. Currently, the most bullish analyst values American Superconductor at US $ 30.00 per share, while the most bearish the price at US $ 24.00. Even so, with a relatively tight grouping of estimates, it appears that analysts are fairly confident in their estimates, suggesting that American Superconductor is an easy business to predict or that analysts all use similar assumptions.
Of course, another way to look at these forecasts is to put them in context to the industry itself. For example, we noticed that the growth rate of American Superconductor is expected to accelerate significantly, with revenues expected to grow by 26% by the end of 2022 on an annualized basis. This is well above its historic decline of 2.8% per year over the past five years. Compare that to analysts’ estimates for the industry as a whole, which suggest the industry’s revenue (overall) is expected to grow by 11% per year. Not only is American Superconductor’s revenue expected to improve, but it looks like analysts are also expecting faster growth than the industry at large.
The bottom line
The most important thing to remember is that analysts have increased their estimates of loss per share for the next year. Fortunately, they have also improved their revenue estimates and expect revenue to grow faster than the industry as a whole. There has been no real change to the consensus price target, suggesting that the intrinsic value of the company has not undergone any major changes with the latest estimates.
With this in mind, we still believe that the long-term trajectory of the company is much more important for investors to consider. We have estimates – from several US superconductor analysts – going up to 2023, and you can see them for free on our platform here.
You should always take note of the risks, for example – American Superconductor a 3 warning signs we think you should be aware.
This Simply Wall St article is general in nature. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in the mentioned stocks.
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