Analysts Have Lowered Expectations For Gogoro Inc. (NASDAQ:GGR) After Its Latest Results

investors Gogoro Inc. (NASDAQ:GGR) had a good week as its shares rose 7.9% to close at $4.65 following the release of full-year results. It looks like the results were pretty good overall. While earnings of $383 million were in line with analysts’ forecasts, legal losses were much smaller than expected, with Gogoro losing $0.45 per share. Following the result, the analysts have updated their earnings model and it would be good to know if they think the company’s prospects have changed significantly or if it is business as usual. We thought readers would find it interesting to see the latest analysts’ (legal) post-earnings forecasts for the next year.

Check out our latest analysis for Gogoro

Following the latest results, Gogoro’s three analysts are now forecasting revenue of $439.2 million in 2023. That would be a solid 15% increase in revenue compared to the trailing 12 months. Losses are expected to widen slightly to $0.44 per share. Prior to this most recent report, the consensus had been expecting revenue of $476.2 million and a loss of $0.34 per share. So it’s pretty clear that analysts have mixed opinions on Gogoro following this update; Earnings have been downgraded and losses per share are likely to widen.

There was no material change from the consensus price target of $5.60, suggesting the company is performing roughly in line despite lower earnings per share guidance. That’s not the only conclusion we can draw from this data, however, as some investors also like to consider dispersion in estimates when assessing analyst price targets. There are some divergent perceptions on Gogoro, with the most optimistic analyst rating it at $6.50 a share and the most bearish at $4.30 a share. Analysts definitely have differing views on the business, but we don’t think the spread of estimates is wide enough to suggest that Gogoro shareholders could expect extreme results.

Now, if we look at the bigger picture, one of the ways we can understand these forecasts is by seeing how they compare to both past performance and industry growth estimates. One thing that stands out from these estimates is that Gogoro is expected to grow faster going forward than it has historically, with revenue expected to grow 15% annually through the end of 2023. If achieved, it would be a lot better than the 0.01% annual decline over the past three years. In contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecasting revenue growth of 18% per year. Although Gogoro’s earnings are expected to improve, analysts still appear to be bearish on the business, predicting that it will grow at a slower pace than the industry as a whole.

The final result

The main takeaway is that analysts have raised their estimates for next year’s loss per share. On the downside, they’ve also downgraded their sales estimates, and forecasts suggest sales will underperform the broader industry. There was no real change in the consensus price target, suggesting that the company’s intrinsic value has not changed significantly from the most recent estimates.

Based on this train of thought, we believe the company’s long-term prospects are much more relevant than next year’s earnings. We have forecasts for Gogoro up to 2025 and you can consult them for free on our platform here.

You should also find out about them 1 warning sign we sighted with Gogoro.

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This Simply Wall St article is of a general nature. We provide comments based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended as financial advice. It is not a recommendation to buy or sell any stock and does not take into account your goals or financial situation. Our goal is to offer you long-term focused analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any of the stocks mentioned.