The analysts covering Dragonfly Energy Holdings Corp. (NASDAQ:DFLI) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for next year. Revenue and earnings per share (EPS) forecasts were both revised downwards, with analysts seeing grey clouds on the horizon.

Following the downgrade, the most recent consensus for Dragonfly Energy Holdings from its four analysts is for revenues of US$79m in 2025 which, if met, would be a sizeable 61% increase on its sales over the past 12 months. Losses are expected to increase slightly, to US$0.46 per share. However, before this estimates update, the consensus had been expecting revenues of US$103m and US$0.41 per share in losses. So there's been quite a change-up of views after the recent consensus updates, with the analysts making a serious cut to their revenue forecasts while also expecting losses per share to increase.

View our latest analysis for Dragonfly Energy Holdings

The consensus price target fell 6.9% to US$1.69, implicitly signalling that lower earnings per share are a leading indicator for Dragonfly Energy Holdings' valuation.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. For example, we noticed that Dragonfly Energy Holdings' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 46% growth to the end of 2025 on an annualised basis. That is well above its historical decline of 17% a year over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 8.9% per year. Not only are Dragonfly Energy Holdings' revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that analysts increased their loss per share estimates for next year. Unfortunately, analysts also downgraded their revenue estimates, although our data indicates revenues are expected to perform better than the wider market. Given the scope of the downgrades, it would not be a surprise to see the market become more wary of the business.

So things certainly aren't looking great, and you should also know that we've spotted some potential warning signs with Dragonfly Energy Holdings, including a short cash runway. For more information, you can click here to discover this and the 3 other warning signs we've identified.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership.

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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.