New Fortress Energy Faces Challenges Ahead of Earnings Report

New Fortress Energy is set to release earnings on May 14, with analysts predicting a negative EPS of $-0.05. Investors hope for positive guidance despite a 73.16% drop in shares over the past year. The report outlines key financial indicators influencing investor sentiment.

Date: 14-05-2025

AI Rating: 4

Earnings Per Share (EPS): New Fortress Energy's anticipated EPS for the upcoming report is $-0.05, reflecting a challenging operational environment. The company, however, reported an EPS beat of $0.09 in the last quarter, which positively impacted its stock price by 7.85% on the following trading day.

Revenue Growth: The report highlights that New Fortress Energy has experienced a negative revenue growth rate of -10.46%. This decline may raise concerns for investors about the company's ability to generate sales compared to its peers, particularly as it stands at the top for revenue growth among them.

Net Income and Profit Margins: The report indicates a net margin of -35.66%, suggesting significant challenges in maintaining profitability. Additionally, the company's negative margins may deter potential investors, indicating that it struggles to control costs effectively.

Return on Equity (ROE): New Fortress Energy's return on equity is at -14.08%, which is below industry benchmarks, suggesting inefficiencies in capital utilization and potentially unsatisfactory returns for shareholders.

Debt Management: The company's debt-to-equity ratio is reported at 5.06, indicating a heavy reliance on borrowed funds. This high leverage increases financial risk and could affect the sustainability of the company's operations going forward.

Overall, New Fortress Energy's upcoming earnings report is crucial for understanding its trajectory. While the potential for upside exists given an average price target of $13.75, investors must tread carefully due to the negative indicators presented.

Stocks: NFE