Revenue Beat: Schoeller-Bleckmann Oilfield Equipment Aktiengesellschaft Beat Analyst Estimates By 15%

The quarterly results for Schoeller-Bleckmann Oilfield Equipment Aktiengesellschaft (VIE:SBO) were released last week, making it a good time to revisit its performance. Schoeller-Bleckmann Oilfield Equipment beat revenue forecasts by a solid 15% to hit €76m. Statutory earnings per share came in at €2.03, in line with expectations. 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.

Check out our latest analysis for Schoeller-Bleckmann Oilfield Equipment

Following the recent earnings report, the consensus from six analysts covering Schoeller-Bleckmann Oilfield Equipment is for revenues of €304.9m in 2020, implying a definite 9.2% decline in sales compared to the last 12 months. The loss per share is expected to ameliorate slightly, reducing to €0.92. Yet prior to the latest earnings, the analysts had been forecasting revenues of €307.2m and losses of €0.73 per share in 2020. So it's pretty clear the analysts have mixed opinions on Schoeller-Bleckmann Oilfield Equipment even after this update; although they reconfirmed their revenue numbers, it came at the cost of a per-share losses.

As a result, there was no major change to the consensus price target of €33.00, with the analysts implicitly confirming that the business looks to be performing in line with expectations, despite higher forecast losses. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Schoeller-Bleckmann Oilfield Equipment at €50.00 per share, while the most bearish prices it at €18.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. These estimates imply that sales are expected to slow, with a forecast revenue decline of 9.2%, a significant reduction from annual growth of 12% 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 4.2% annually for the foreseeable future. It's pretty clear that Schoeller-Bleckmann Oilfield Equipment's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at Schoeller-Bleckmann Oilfield Equipment. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - although our data does suggest that Schoeller-Bleckmann Oilfield Equipment's revenues are expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Schoeller-Bleckmann Oilfield Equipment going out to 2024, and you can see them free on our platform here..

However, before you get too enthused, we've discovered 3 warning signs for Schoeller-Bleckmann Oilfield Equipment (1 doesn't sit too well with us!) that you should be aware of.

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This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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