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SFL Corporation Ltd. (NYSE:SFL) shareholders are probably feeling a little disappointed, since its shares fell 3.0% to US$10.30 in the week after its latest quarterly results. It was a pretty mixed result, with revenues beating expectations to hit US$255m. Statutory earnings fell 7.6% short of analyst forecasts, reaching US$0.34 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on SFL after the latest results.
Check out our latest analysis for SFL
Following last week's earnings report, SFL's four analysts are forecasting 2025 revenues to be US$867.1m, approximately in line with the last 12 months. Statutory earnings per share are forecast to plummet 24% to US$0.81 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$878.6m and earnings per share (EPS) of US$0.95 in 2025. So there's definitely been a decline in sentiment after the latest results, noting the substantial drop in new EPS forecasts.
The consensus price target held steady at US$13.58, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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 SFL analyst has a price target of US$16.00 per share, while the most pessimistic values it at US$10.80. 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.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 0.8% by the end of 2025. This indicates a significant reduction from annual growth of 15% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 3.1% annually for the foreseeable future. It's pretty clear that SFL's revenues are expected to perform substantially worse than the wider industry.