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Tidewater Inc. (NYSE:TDW) shareholders are probably feeling a little disappointed, since its shares fell 4.7% to US$56.07 in the week after its latest quarterly results. Statutory earnings per share fell badly short of expectations, coming in at US$0.87, some 25% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at US$340m. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Tidewater after the latest results.
See our latest analysis for Tidewater
Taking into account the latest results, the most recent consensus for Tidewater from six analysts is for revenues of US$1.63b in 2025. If met, it would imply a major 25% increase on its revenue over the past 12 months. Per-share earnings are expected to leap 136% to US$8.19. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$1.65b and earnings per share (EPS) of US$8.92 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.
It might be a surprise to learn that the consensus price target fell 7.3% to US$110, with the analysts clearly linking lower forecast earnings to the performance of the stock price. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Tidewater, with the most bullish analyst valuing it at US$135 and the most bearish at US$70.00 per share. 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.
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 pretty clear that there is an expectation that Tidewater's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 19% growth on an annualised basis. This is compared to a historical growth rate of 26% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 5.5% annually. Even after the forecast slowdown in growth, it seems obvious that Tidewater is also expected to grow faster than the wider industry.