Yahoo Finance Blink Charging Co. (NASDAQ:BLNK) Analysts Are Cutting Their Estimates: Here's What You Need To Know
Blink Charging Co. (NASDAQ:BLNK) just released its latest quarterly report and things are not looking great. It definitely looks like a negative result overall with revenues falling 15% short of analyst estimates at US$33m. Statutory losses were US$0.20 per share, 34% bigger than what the analysts expected. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
See our latest analysis for Blink Charging
Taking into account the latest results, the current consensus, from the eight analysts covering Blink Charging, is for revenues of US$146.5m in 2024. This implies a noticeable 6.6% reduction in Blink Charging's revenue over the past 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 58% to US$0.70. Before this earnings announcement, the analysts had been modelling revenues of US$168.8m and losses of US$0.53 per share in 2024. There's been a definite change in sentiment in this update, with the analysts administering a notable cut to next year's revenue estimates, while at the same time increasing their loss per share forecasts.
The average price target fell 29% to US$4.11, implicitly signalling that lower earnings per share are a leading indicator for Blink Charging's 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. The most optimistic Blink Charging analyst has a price target of US$8.00 per share, while the most pessimistic values it at US$2.00. So we wouldn't be assigning too much credibility to analyst price targets in this case, because there are clearly some widely different views on what kind of performance this business can generate. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business.
Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 13% by the end of 2024. This indicates a significant reduction from annual growth of 67% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 8.0% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Blink Charging is expected to lag the wider industry.
The Bottom Line
The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at Blink Charging. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Blink Charging's future valuation.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Blink Charging analysts - going out to 2026, and you can see them free on our platform here.
You still need to take note of risks, for example - Blink Charging has 2 warning signs (and 1 which is a bit unpleasant) we think you should know about.
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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.
