Fuel Tech, Inc. (NASDAQ:FTEK) shareholders are likely a little disappointed as shares fell 2.9% to $1.00 in the week following the release of its latest quarterly results. Revenues came in at $7.0 million, an impressive 21% above analyst forecasts. 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 expectations for the company have changed. We’ve compiled the most up-to-date statutory forecasts to see if analysts have changed their earnings models following these results.

Check out our latest analysis for Fuel Tech

Following the latest results, the only analyst covering Fuel Tech is now forecasting revenues of $28.8 million in 2024. If this forecast is met, it would be a decent 9.3% increase in revenue compared to the last 12 months. Losses are expected to widen 179% to $0.02 per share. Prior to this earnings release, the analyst had been modeling revenues of $27.8 million and a loss of $0.03 per share in 2024. So it seems that optimism about Fuel Tech’s future has increased significantly after the latest consensus numbers, especially with a very promising drop in loss per share forecasts.

It should come as no surprise that these upgrades have led analysts to raise their price target for Fuel Tech by 100% to $4.00.

Now looking at the bigger picture, one of the ways we can understand these projections is by comparing them to past performance and industry growth estimates. For example, we found that Fuel Tech’s growth pace is expected to accelerate significantly. Revenues are expected to grow 19% on an annual basis through the end of 2024. That’s well above the historical decline of 5.4% per year over the past five years. Compare this to analyst estimates for the wider industry, which suggest industry revenues (in total) will grow at a 6.6% annual rate. Not only are Fuel Tech’s revenues expected to improve, but the analyst also seems to expect the company to grow faster than the industry as a whole.

The conclusion

Most importantly, the analyst has confirmed his loss per share estimates for next year. Encouragingly, he has also raised his revenue estimates, and his forecasts suggest that the company is expected to grow faster than the wider industry. We note an increase in the price target, which suggests that the analyst believes the company’s intrinsic value is likely to improve over time.

With that in mind, we wouldn’t jump to a conclusion about Fuel Tech too quickly. Long-term earnings power is much more important than next year’s earnings. At least one analyst has provided forecasts through 2026, which can be viewed free of charge here on our platform.

You still have to consider risks, for example – Fuel Tech has 1 warning sign In our opinion, you should be aware of this.

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