The investors in Stabilis Solutions, Inc.'s (NASDAQ:SLNG) will be rubbing their hands together with glee today, after the share price leapt 38% to US$6.48 in the week following its second-quarter results. Revenues beat expectations by 13% to hit US$12m, although earnings fell badly short, with Stabilis Solutions reported a statutory loss of US$0.25 per share even though the analyst had been forecasting a profit. This is an important time for investors, as they can track a company's performance in its report, look at what expert is forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analyst latest (statutory) post-earnings forecasts for next year.

Following last week's earnings report, Stabilis Solutions' single analyst are forecasting 2026 revenues to be US$56.1m, approximately in line with the last 12 months. Statutory losses are forecast to narrow 8.9% to US$0.46 per share. Yet prior to the latest earnings, the analyst had been anticipated revenues of US$72.7m and earnings per share (EPS) of US$0.02 in 2026. There looks to have been a major change in sentiment regarding Stabilis Solutions' prospects following the latest results, with a pretty serious reduction to revenues and the analyst now forecasting a loss instead of a profit.

The average price target fell 14% to US$9.00, implicitly signalling that lower earnings per share are a leading indicator for Stabilis Solutions' valuation.

Of course, another way to look at these forecasts is to place them into context against the industry itself. From these estimates it looks as though the analyst expects the years of declining revenue to come to an end, given the flat forecast out to 2026. That would be a definite improvement, given that the past five years have seen revenue shrink 2.9% annually. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 1.5% annually. Although Stabilis Solutions' revenues are expected to improve, it seems that it is still expected to grow slower than the wider industry.

The Bottom Line

The most important thing to take away is that the analyst is expecting Stabilis Solutions to become unprofitable next year. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. Furthermore, the analyst also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that in mind, we wouldn't be too quick to come to a conclusion on Stabilis Solutions. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

Even so, be aware that Stabilis Solutions is showing 2 warning signs in our investment analysis , you should know about...

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.