Solaris Energy Infrastructure, Inc. (NYSE:SEI) just released its latest quarterly results and things are looking bullish. Statutory revenue of US$341m and earnings of US$0.42 both blasted past expectations, beating expectations by 25% and 51%, respectively, ahead of expectations. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Taking into account the latest results, the most recent consensus for Solaris Energy Infrastructure from ten analysts is for revenues of US$1.87b in 2027. If met, it would imply a huge 100% increase on its revenue over the past 12 months. Per-share earnings are expected to bounce 349% to US$4.96. Before this earnings report, the analysts had been forecasting revenues of US$1.87b and earnings per share (EPS) of US$4.40 in 2027. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the solid gain to earnings per share expectations following these results.
Check out our latest analysis for Solaris Energy Infrastructure
There's been no major changes to the consensus price target of US$106, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Solaris Energy Infrastructure at US$120 per share, while the most bearish prices it at US$72.00. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Solaris Energy Infrastructure shareholders.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Solaris Energy Infrastructure's past performance and to peers in the same industry. It's clear from the latest estimates that Solaris Energy Infrastructure's rate of growth is expected to accelerate meaningfully, with the forecast 74% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 30% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 7.3% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Solaris Energy Infrastructure to grow faster 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 Solaris Energy Infrastructure following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Solaris Energy Infrastructure going out to 2028, and you can see them free on our platform here..
Don't forget that there may still be risks. For instance, we've identified 3 warning signs for Solaris Energy Infrastructure (1 doesn't sit too well with us) you should be aware of.
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