CES Energy Solutions Corp. Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now
It's been a pretty great week for CES Energy Solutions Corp. (TSE:CEU) shareholders, with its shares surging 12% to CA$18.33 in the week since its latest quarterly results. It was not a great result overall. Although revenues beat expectations, hitting CA$714m, statutory earnings missed analyst forecasts by 11%, coming in at just CA$0.18 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Taking into account the latest results, the consensus forecast from CES Energy Solutions' eight analysts is for revenues of CA$2.90b in 2026. This reflects an okay 7.9% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to accumulate 8.5% to CA$1.02. Yet prior to the latest earnings, the analysts had been anticipated revenues of CA$2.77b and earnings per share (EPS) of CA$1.06 in 2026. So it's pretty clear consensus is mixed on CES Energy Solutions after the latest results; whilethe analysts lifted revenue numbers, they also administered a small dip in per-share earnings expectations.
Check out our latest analysis for CES Energy Solutions
There's been no major changes to the price target of CA$21.75, suggesting that the impact of higher forecast revenue and lower earnings won't result in a meaningful change to the business' valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on CES Energy Solutions, with the most bullish analyst valuing it at CA$25.00 and the most bearish at CA$18.00 per share. 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.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The period to the end of 2026 brings more of the same, according to the analysts, with revenue forecast to display 16% growth on an annualised basis. That is in line with its 16% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 7.2% per year. So although CES Energy Solutions is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. The consensus price target held steady at CA$21.75, 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 CES Energy Solutions. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple CES Energy Solutions analysts - going out to 2028, and you can see them free on our platform here.
We don't want to rain on the parade too much, but we did also find 2 warning signs for CES Energy Solutions that you need to be mindful of.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.