Xos, Inc. (NASDAQ:XOS) just released its latest quarterly report and things are not looking great. It looks to have been a weak result overall, as revenue of US$4.7m were 61% less than the analyst expected. Unsurprisingly, losses were also somewhat larger than was modelled, at US$0.55 per share. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analyst is expecting for next year.

Following the latest results, Xos' sole analyst are now forecasting revenues of US$39.5m in 2026. This would be a satisfactory 4.9% improvement in revenue compared to the last 12 months. Losses are forecast to balloon 40% to US$1.99 per share. Yet prior to the latest earnings, the analyst had been forecasting revenues of US$49.1m and losses of US$2.08 per share in 2026. So there's been quite a change-up of views after the recent consensus updates, withthe analyst making a serious cut to their revenue forecasts while also reducing the estimated losses the business will incur.

The consensus price target fell 33% to US$4.00, with the dip in revenue estimates clearly souring sentiment, despite the forecast reduction in losses.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Xos' revenue growth is expected to slow, with the forecast 9.9% annualised growth rate until the end of 2026 being well below the historical 27% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 7.1% annually. Even after the forecast slowdown in growth, it seems obvious that Xos is also expected to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that the analyst made no changes to their forecasts for a loss next year. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. The consensus price target fell measurably, with the analyst seemingly not reassured by the latest results, leading to a lower estimate of Xos' future valuation.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

You should always think about risks though.

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.