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Shareholders might have noticed that Nabors Industries Ltd. (NYSE:NBR) filed its annual result this time last week. The early response was not positive, with shares down 9.4% to US$47.20 in the past week. It was a pretty bad result overall; while revenues were in line with expectations at US$2.9b, statutory losses exploded to US$22.37 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Check out our latest analysis for Nabors Industries
Taking into account the latest results, the current consensus from Nabors Industries' six analysts is for revenues of US$3.12b in 2025. This would reflect an okay 6.5% increase on its revenue over the past 12 months. Per-share statutory losses are expected to explode, reaching US$12.85 per share. Before this earnings report, the analysts had been forecasting revenues of US$3.58b and earnings per share (EPS) of US$1.00 in 2025. So we can see that the consensus has become notably more bearish on Nabors Industries' outlook following these results, with a real cut to next year's revenue estimates. Furthermore, they expect the business to be loss-making next year, compared to their previous calls for a profit.
The consensus price target fell 11% to US$77.13, with the analysts clearly concerned about the company following the weaker revenue and earnings outlook. 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 Nabors Industries, with the most bullish analyst valuing it at US$115 and the most bearish at US$54.00 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
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. It's clear from the latest estimates that Nabors Industries' rate of growth is expected to accelerate meaningfully, with the forecast 6.5% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 4.9% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 4.3% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Nabors Industries to grow faster than the wider industry.