In This Article:
It's been a pretty great week for NOV Inc. (NYSE:NOV) shareholders, with its shares surging 14% to US$16.43 in the week since its latest annual results. The result was positive overall - although revenues of US$8.9b were in line with what the analysts predicted, NOV surprised by delivering a statutory profit of US$1.60 per share, modestly greater than expected. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on NOV after the latest results.
View our latest analysis for NOV
Following last week's earnings report, NOV's 18 analysts are forecasting 2025 revenues to be US$8.88b, approximately in line with the last 12 months. Statutory earnings per share are forecast to decrease 7.0% to US$1.52 in the same period. In the lead-up to this report, the analysts had been modelling revenues of US$8.86b and earnings per share (EPS) of US$1.49 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
The analysts reconfirmed their price target of US$18.92, showing that the business is executing well and in line with expectations. 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. There are some variant perceptions on NOV, with the most bullish analyst valuing it at US$24.00 and the most bearish at US$12.00 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that NOV's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 0.08% growth on an annualised basis. This is compared to a historical growth rate of 5.7% 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 4.4% per year. Factoring in the forecast slowdown in growth, it seems obvious that NOV is also expected to grow slower than other industry participants.