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ProPetro Holding Corp. (NYSE:PUMP) defied analyst predictions to release its quarterly results, which were ahead of market expectations. It was overall a positive result, with revenues beating expectations by 2.9% to hit US$283m. ProPetro Holding also reported a statutory profit of US$0.11, which was an impressive 96% above what the analysts had forecast. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
See our latest analysis for ProPetro Holding
Taking into account the latest results, the most recent consensus for ProPetro Holding from seven analysts is for revenues of US$1.27b in 2022 which, if met, would be a sizeable 28% increase on its sales over the past 12 months. Earnings are expected to improve, with ProPetro Holding forecast to report a statutory profit of US$0.98 per share. Before this earnings report, the analysts had been forecasting revenues of US$1.29b and earnings per share (EPS) of US$0.64 in 2022. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the massive increase in earnings per share expectations following these results.
There's been no major changes to the consensus price target of US$17.05, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic ProPetro Holding analyst has a price target of US$21.00 per share, while the most pessimistic values it at US$13.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
Of course, another way to look at these forecasts is to place them into context against the industry itself. For example, we noticed that ProPetro Holding's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 39% growth to the end of 2022 on an annualised basis. That is well above its historical decline of 2.4% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 9.6% per year. Not only are ProPetro Holding's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.