National Energy Services Reunited Corp. (NASDAQ:NESR) shares fell 3.6% to US$7.96 in the week since its latest full-year results. It looks like a pretty bad result, all things considered. Although revenues of US$658m were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 29% to hit US$0.45 per share. This is an important time for investors, as they can track a company's performance in its report, look at what top analysts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what analysts' statutory forecasts suggest is in store for next year.
See our latest analysis for National Energy Services Reunited
After the latest results, the six analysts covering National Energy Services Reunited are now predicting revenues of US$806.0m in 2020. If met, this would reflect a major 22% improvement in sales compared to the last 12 months. Statutory earnings per share are expected to shoot up 128% to US$1.03. Before this earnings report, analysts had been forecasting revenues of US$800.3m and earnings per share (EPS) of US$1.00 in 2020. Analysts seem to have become more bullish on the business, judging by their new earnings per share estimates.
The consensus price target was unchanged at US$15.07, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values National Energy Services Reunited at US$18.00 per share, while the most bearish prices it at US$13.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
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. Analysts are definitely expecting National Energy Services Reunited's growth to accelerate, with the forecast 22% growth ranking favourably alongside historical growth of 10% per annum over the past year. Compare this with other companies in the same market, which are forecast to grow their revenue 3.7% next year. It seems obvious that, while the growth outlook is brighter than the recent past, analysts also expect National Energy Services Reunited to grow faster than the wider market.
The Bottom Line
The biggest takeaway for us from these new estimates is that the consensus upgraded its earnings per share estimates, showing a clear improvement in sentiment around National Energy Services Reunited's earnings potential next year. Happily, there were no major changes to revenue forecasts, with analysts still expecting the business to grow faster than the wider market. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for National Energy Services Reunited going out to 2022, and you can see them free on our platform here..
It might also be worth considering whether National Energy Services Reunited's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.
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National Energy Services Reunited Corp. Just Missed Earnings And Its EPS Looked Sad - But Analysts Have Updated Their Models - Yahoo Finance
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