The investors in Solaris Energy Infrastructure, Inc.'s (NYSE:SEI) will be rubbing their hands together with glee today, after the share price leapt 20% to US$33.81 in the week following its yearly results. It looks like a credible result overall - although revenues of US$313m were what the analysts expected, Solaris Energy Infrastructure surprised by delivering a (statutory) profit of US$0.50 per share, an impressive 39% above what was forecast. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for Solaris Energy Infrastructure

Taking into account the latest results, the consensus forecast from Solaris Energy Infrastructure's three analysts is for revenues of US$516.5m in 2025. This reflects a substantial 65% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to leap 147% to US$0.96. In the lead-up to this report, the analysts had been modelling revenues of US$495.0m and earnings per share (EPS) of US$0.92 in 2025. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.

With these upgrades, we're not surprised to see that the analysts have lifted their price target 10% to US$43.75per share. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Solaris Energy Infrastructure at US$50.00 per share, while the most bearish prices it at US$36.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's clear from the latest estimates that Solaris Energy Infrastructure's rate of growth is expected to accelerate meaningfully, with the forecast 65% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 16% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 4.2% annually. 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 most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Solaris Energy Infrastructure following these results. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

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 forecasts for Solaris Energy Infrastructure going out to 2027, and you can see them free on our platform here.

Even so, be aware that Solaris Energy Infrastructure is showing 4 warning signs in our investment analysis , and 2 of those shouldn't be ignored...

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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.