Paramount Resources Ltd. Just Recorded A 8.7% Revenue Beat: Here's What Analysts Think

Last week saw the newest quarterly earnings release from Paramount Resources Ltd. (TSE:POU), an important milestone in the company's journey to build a stronger business. Results overall were respectable, with statutory earnings of CA$3.17 per share roughly in line with what the analysts had forecast. Revenues of CA$438m came in 8.7% ahead of analyst predictions. 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 Paramount Resources after the latest results.

Check out our latest analysis for Paramount Resources

Taking into account the latest results, the consensus forecast from Paramount Resources' three analysts is for revenues of CA$2.23b in 2025. This reflects a sizeable 24% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to bounce 60% to CA$3.93. In the lead-up to this report, the analysts had been modelling revenues of CA$2.25b and earnings per share (EPS) of CA$3.90 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at CA$37.06. 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. The most optimistic Paramount Resources analyst has a price target of CA$43.00 per share, while the most pessimistic values it at CA$29.00. 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.

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. We can infer from the latest estimates that forecasts expect a continuation of Paramount Resources'historical trends, as the 19% annualised revenue growth to the end of 2025 is roughly in line with the 23% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 2.0% annually. So it's pretty clear that Paramount Resources is forecast to grow substantially faster than its industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at CA$37.06, with the latest estimates not enough to have an impact on their price targets.

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. We have forecasts for Paramount Resources going out to 2026, and you can see them free on our platform here.

Plus, you should also learn about the 3 warning signs we've spotted with Paramount Resources .

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.