The quarterly results for Allego N.V. (NYSE:ALLG) were released last week, making it a good time to revisit its performance. It was a weak result overall, with Allego reporting €29m in revenues, which was 37% less than what the analysts had expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
See our latest analysis for Allego
Following the latest results, Allego's three analysts are now forecasting revenues of €185.1m in 2023. This would be a substantial 22% improvement in revenue compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 50% to €0.18. Yet prior to the latest earnings, the analysts had been forecasting revenues of €198.8m and losses of €0.089 per share in 2023. So it's pretty clear the analysts have mixed opinions on Allego after this update; revenues were downgraded and per-share losses expected to increase.
There was no major change to the consensus price target of US$6.83, signalling that the business is performing roughly in line with expectations, despite lower earnings per share forecasts. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Allego, with the most bullish analyst valuing it at US$8.00 and the most bearish at US$5.00 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's clear from the latest estimates that Allego's rate of growth is expected to accelerate meaningfully, with the forecast 49% annualised revenue growth to the end of 2023 noticeably faster than its historical growth of 30% over the past year. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.8% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Allego to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that the analysts increased their loss per share estimates for next year. They also downgraded Allego's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. The consensus price target held steady at US$6.83, with the latest estimates not enough to have an impact on their price targets.
With that in mind, we wouldn't be too quick to come to a conclusion on Allego. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Allego analysts - going out to 2025, and you can see them free on our platform here.
Before you take the next step you should know about the 3 warning signs for Allego (2 don't sit too well with us!) that we have uncovered.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.