Industry Analysts Just Made A Meaningful Upgrade To Their Solaris Energy Infrastructure, Inc. (NYSE:SEI) Revenue Forecasts
Solaris Energy Infrastructure, Inc. (NYSE:SEI) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The analysts have sharply increased their revenue numbers, with a view that Solaris Energy Infrastructure will make substantially more sales than they'd previously expected.
After the upgrade, the three analysts covering Solaris Energy Infrastructure are now predicting revenues of US$1.0b in 2026. If met, this would reflect a substantial 34% improvement in sales compared to the last 12 months. Per-share earnings are expected to jump 84% to US$1.48. Before this latest update, the analysts had been forecasting revenues of US$869m and earnings per share (EPS) of US$0.64 in 2026. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.
See our latest analysis for Solaris Energy Infrastructure
Despite these upgrades, the analysts have not made any major changes to their price target of US$96.91, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth.
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 78% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 28% 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 7.5% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Solaris Energy Infrastructure is expected to grow much faster than its 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 this year. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right 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 3 potential warning sign with Solaris Energy Infrastructure, including concerns around earnings quality. You can learn more, and discover the 1 other warning sign we've identified, for free on our platform here.
Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership.
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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.