In This Article:
Shareholders might have noticed that Tidewater Inc. (NYSE:TDW) filed its yearly result this time last week. The early response was not positive, with shares down 9.6% to US$45.62 in the past week. It looks like the results were a bit of a negative overall. While revenues of US$1.3b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 6.5% to hit US$3.40 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
View our latest analysis for Tidewater
Following the latest results, Tidewater's six analysts are now forecasting revenues of US$1.39b in 2025. This would be a reasonable 3.0% improvement in revenue compared to the last 12 months. Per-share earnings are expected to step up 13% to US$3.98. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$1.45b and earnings per share (EPS) of US$5.56 in 2025. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a large cut to earnings per share estimates.
The consensus price target fell 8.4% to US$72.86, with the weaker earnings outlook clearly leading valuation estimates. 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. Currently, the most bullish analyst values Tidewater at US$95.00 per share, while the most bearish prices it at US$56.00. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Tidewater's past performance and to peers in the same industry. We would highlight that Tidewater's revenue growth is expected to slow, with the forecast 3.0% annualised growth rate until the end of 2025 being well below the historical 29% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 4.2% per year. Factoring in the forecast slowdown in growth, it seems obvious that Tidewater is also expected to grow slower than other industry participants.