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It's been a mediocre week for SFL Corporation Ltd. (NYSE:SFL) shareholders, with the stock dropping 13% to US$9.44 in the week since its latest yearly results. Revenues of US$894m were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at US$1.01, missing estimates by 3.1%. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
See our latest analysis for SFL
After the latest results, the consensus from SFL's four analysts is for revenues of US$753.3m in 2025, which would reflect a definite 16% decline in revenue compared to the last year of performance. The company is forecast to report a statutory loss of US$0.0084 in 2025, a sharp decline from a profit over the last year. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$827.3m and earnings per share (EPS) of US$0.52 in 2025. The analysts have made an abrupt about-face on SFL, administering a minor downgrade to to revenue forecasts and slashing the earnings outlook from a profit to loss.
The consensus price target fell 5.8% to US$12.20, with the analysts clearly concerned about the company following the weaker revenue and earnings outlook. 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. There are some variant perceptions on SFL, with the most bullish analyst valuing it at US$14.00 and the most bearish at US$10.80 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.
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. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 16% by the end of 2025. This indicates a significant reduction from annual growth of 16% 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 4.5% annually for the foreseeable future. It's pretty clear that SFL's revenues are expected to perform substantially worse than the wider industry.