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Inspired Energy PLC (LON:INSE) Yearly Results: Here's What Analysts Are Forecasting For This Year

It's been a pretty great week for Inspired Energy PLC (LON:INSE) shareholders, with its shares surging 13% to UK£0.17 in the week since its latest annual results. It was an okay report, and revenues came in at UK£49m, approximately in line with analyst estimates leading up to the results announcement. Earnings are an important time for investors, as they can track a company's performance, look at what the analyst is 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 analyst has changed their mind on Inspired Energy after the latest results.

View our latest analysis for Inspired Energy

AIM:INSE Past and Future Earnings June 5th 2020
AIM:INSE Past and Future Earnings June 5th 2020

Following the latest results, Inspired Energy's one analyst are now forecasting revenues of UK£58.1m in 2020. This would be a solid 18% improvement in sales compared to the last 12 months. Before this earnings result, the analyst had predicted UK£57.7m revenue in 2020, although there was no accompanying EPS estimate. It looks like the latest results have met expectations and confirmed that the business is performing in line with expectations, given there's been no real changes in the new revenue estimates.

We'd also point out that thatthe analyst has made no major changes to their price target of UK£0.29.

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. We would highlight that Inspired Energy's revenue growth is expected to slow, with forecast 18% increase next year well below the historical 27%p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 3.0% next year. So it's pretty clear that, while Inspired Energy's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most important thing to take away is that the analyst reconfirmed their revenue estimates for next year, suggesting that the business is performing in line with expectations. Fortunately, they also reconfirmed their revenue numbers, suggesting sales are tracking in line with expectations - and our data suggests that revenues are expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

One Inspired Energy broker/analyst has provided estimates out to 2022, which can be seen for free on our platform here.

We don't want to rain on the parade too much, but we did also find 3 warning signs for Inspired Energy that you need to be mindful of.

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This article by Simply Wall St is general in nature. 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. Thank you for reading.