Celebrations may be in order for Solaris Energy Infrastructure, Inc. (NYSE:SEI) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The analysts greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals. Investors have been pretty optimistic on Solaris Energy Infrastructure too, with the stock up 28% to US$64.50 over the past week. Could this upgrade be enough to drive the stock even higher?
Following the upgrade, the most recent consensus for Solaris Energy Infrastructure from its ten analysts is for revenues of US$2.1b in 2027 which, if met, would be a substantial 124% increase on its sales over the past 12 months. Statutory earnings per share are presumed to surge 433% to US$5.58. Prior to this update, the analysts had been forecasting revenues of US$1.9b and earnings per share (EPS) of US$4.96 in 2027. So we can see there’s been a pretty clear increase in analyst sentiment in recent times, with both revenues and earnings per share receiving a decent lift in the latest estimates.
View our latest analysis for Solaris Energy Infrastructure
Although the analysts have upgraded their earnings estimates, there was no change to the consensus price target of US$108, suggesting that the forecast performance does not have a long term impact on the company’s valuation.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It’s clear from the latest estimates that Solaris Energy Infrastructure’s rate of growth is expected to accelerate meaningfully, with the forecast 91% 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 7.7% 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 biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for next year. They also upgraded their revenue estimates for next year, and sales are expected to grow faster than the wider market. The lack of change in the price target is puzzling, but with a serious upgrade to next year’s earnings expectations, it might be time to take another look at Solaris Energy Infrastructure.
These earnings upgrades look like a sterling endorsement, but before diving in – you should know that we’ve spotted 4 potential concerns with Solaris Energy Infrastructure, including a weak balance sheet. For more information, you can click through to our platform to learn more about this and the 3 other concerns we’ve identified .
We also provide an overview of the Solaris Energy Infrastructure Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.
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