It's been a good week for Tigo Energy, Inc. (NASDAQ:TYGO) shareholders, because the company has just released its latest annual results, and the shares gained 4.0% to US$1.04. The results don't look great, especially considering that statutory losses grew 34% toUS$1.04 per share. Revenues of US$54m did beat expectations by 3.4%, but it looks like a bit of a cold comfort. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for Tigo Energy

Taking into account the latest results, the current consensus from Tigo Energy's four analysts is for revenues of US$88.7m in 2025. This would reflect a sizeable 64% increase on its revenue over the past 12 months. Losses are predicted to fall substantially, shrinking 55% to US$0.47. Before this latest report, the consensus had been expecting revenues of US$86.2m and US$0.57 per share in losses. So it seems there's been a definite increase in optimism about Tigo Energy's future following the latest consensus numbers, with a notable improvement in the loss per share forecasts in particular.

Despite these upgrades,the analysts have not made any major changes to their price target of US$3.03, implying that their latest estimates don't have a long term impact on what they think the stock is worth. 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 Tigo Energy analyst has a price target of US$4.50 per share, while the most pessimistic values it at US$1.10. 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.

Of course, another way to look at these forecasts is to place them into context against the industry itself. One thing stands out from these estimates, which is that Tigo Energy is forecast to grow faster in the future than it has in the past, with revenues expected to display 64% annualised growth until the end of 2025. If achieved, this would be a much better result than the 1.6% annual decline over the past three years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 8.6% annually. Not only are Tigo Energy's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. The consensus price target held steady at US$3.03, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Tigo Energy analysts - going out to 2027, and you can see them free on our platform here.

Even so, be aware that Tigo Energy is showing 3 warning signs in our investment analysis , you should know about...

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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.