Shareholders might have noticed that Beach Energy Limited (ASX:BPT) filed its annual result this time last week. The early response was not positive, with shares down 7.4% to AU$1.31 in the past week. Revenues were in line with expectations, at AU$1.8b, while statutory losses ballooned to AU$0.21 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Beach Energy

Taking into account the latest results, Beach Energy's 15 analysts currently expect revenues in 2025 to be AU$1.77b, approximately in line with the last 12 months. Beach Energy is also expected to turn profitable, with statutory earnings of AU$0.17 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of AU$1.84b and earnings per share (EPS) of AU$0.20 in 2025. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a real cut to earnings per share numbers.

It'll come as no surprise then, to learn that the analysts have cut their price target 11% to AU$1.58. 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. The most optimistic Beach Energy analyst has a price target of AU$2.58 per share, while the most pessimistic values it at AU$1.10. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Beach Energy's past performance and to peers in the same industry. We would also point out that the forecast 1.4% annualised revenue decline to the end of 2025 is roughly in line with the historical trend, which saw revenues shrink 1.5% annually over the past five years By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 6.0% per year. So while a broad number of companies are forecast to grow, unfortunately Beach Energy is expected to see its revenue affected worse than other companies in the industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Beach Energy. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that in mind, we wouldn't be too quick to come to a conclusion on Beach Energy. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Beach Energy going out to 2027, and you can see them free on our platform here..

Even so, be aware that Beach Energy is showing 1 warning sign in our investment analysis , you should know about...

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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.