Aker Carbon Capture ASA (OB:ACC) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year’s forecasts. The analysts have sharply increased their revenue numbers, with a view that Aker Carbon Capture will make substantially more sales than they’d previously expected.
After this upgrade, Aker Carbon Capture’s eight analysts are now forecasting revenues of kr1.4b in 2023. This would be a sizeable 36% improvement in sales compared to the last 12 months. The loss per share is expected to ameliorate slightly, reducing to kr0.29. However, before this estimates update, the consensus had been expecting revenues of kr1.2b and kr0.32 per share in losses. We can see there’s definitely been a change in sentiment in this update, with the analysts administering a sizeable upgrade to this year’s revenue estimates, while at the same time reducing their loss estimates.
Of course, another way to look at these forecasts is to place them into context against the industry itself. We can infer from the latest estimates that forecasts expect a continuation of Aker Carbon Capture’shistorical trends, as the 86% annualised revenue growth to the end of 2023 is roughly in line with the 82% annual revenue growth over the past year. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 39% annually. So although Aker Carbon Capture is expected to maintain its revenue growth rate, it’s definitely expected to grow faster than the wider industry.
The Bottom Line
The highlight for us was that the consensus reduced its estimated losses this year, perhaps suggesting Aker Carbon Capture is moving incrementally towards profitability. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. Seeing the dramatic upgrade to this year’s forecasts, it might be time to take another look at Aker Carbon Capture.
Better yet, Aker Carbon Capture is expected to break-even soon – within the next few years – according to analyst forecasts, which would be a momentous event for shareholders. For more information, you can click through to our free platform to learn more about these forecasts.
