It's shaping up to be a tough period for Eos Energy Enterprises, Inc. (NASDAQ:EOSE), which a week ago released some disappointing third-quarter results that could have a notable impact on how the market views the stock. Statutory earnings fell substantially short of expectations, with revenues of US$854k missing forecasts by 87%. Losses exploded, with a per-share loss of US$1.77 some 941% below prior forecasts. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Eos Energy Enterprises after the latest results.

See our latest analysis for Eos Energy Enterprises

Taking into account the latest results, the most recent consensus for Eos Energy Enterprises from six analysts is for revenues of US$232.0m in 2025. If met, it would imply a substantial 1,451% increase on its revenue over the past 12 months. Losses are predicted to fall substantially, shrinking 85% to US$0.36. Before this latest report, the consensus had been expecting revenues of US$303.7m and US$0.29 per share in losses. So there's been quite a change-up of views after the recent consensus updates, withthe analysts making a serious cut to their revenue outlook while also expecting losses per share to increase.

The average price target was broadly unchanged at US$4.07, perhaps implicitly signalling that the weaker earnings outlook is not expected to have a long-term impact on the 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 Eos Energy Enterprises analyst has a price target of US$7.00 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.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that Eos Energy Enterprises' rate of growth is expected to accelerate meaningfully, with the forecast 8x annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 50% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 8.5% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Eos Energy Enterprises to grow faster than 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 Eos Energy Enterprises. They also downgraded Eos Energy Enterprises' revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. The consensus price target held steady at US$4.07, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Eos Energy Enterprises going out to 2026, and you can see them free on our platform here.

It is also worth noting that we have found 5 warning signs for Eos Energy Enterprises (3 can't be ignored!) that you need to take into consideration.

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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.