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It's been a pretty great week for Nabors Industries Ltd. (NYSE:NBR) shareholders, with its shares surging 18% to US$101 in the week since its latest quarterly results. It was a pretty bad result overall; while revenues were in line with expectations at US$735m, statutory losses exploded to US$4.29 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are 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 analysts are expecting for next year.
See our latest analysis for Nabors Industries
Taking into account the latest results, the consensus forecast from Nabors Industries' eight analysts is for revenues of US$3.01b in 2024. This reflects a credible 2.8% improvement in revenue compared to the last 12 months. Losses are predicted to fall substantially, shrinking 60% to US$7.04. Before this earnings announcement, the analysts had been modelling revenues of US$3.04b and losses of US$7.26 per share in 2024. It looks like there's been a modest increase in sentiment in the recent updates, with the analysts becoming a bit more optimistic in their predictions for losses per share, even though the revenue numbers were unchanged.
The average price target held steady at US$102, seeming to indicate that business is performing in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Nabors Industries, with the most bullish analyst valuing it at US$140 and the most bearish at US$79.00 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.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that Nabors Industries' rate of growth is expected to accelerate meaningfully, with the forecast 5.7% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 1.1% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 7.5% per year. It seems obvious that, while the future growth outlook is brighter than the recent past, Nabors Industries is expected to grow slower than the wider industry.