Earnings Update: Tidewater Midstream and Infrastructure Ltd. (TSE:TWM) Just Reported And Analysts Are Trimming Their Forecasts

The investors in Tidewater Midstream and Infrastructure Ltd.'s (TSE:TWM) will be rubbing their hands together with glee today, after the share price leapt 23% to CA$0.27 in the week following its full-year results. Revenues of CA$1.6b came in a modest 5.0% below forecasts. Statutory losses were a relative bright spot though, with a per-share loss of CA$0.06 coming in a substantial 29% smaller than what the analyst had expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analyst is forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analyst latest (statutory) post-earnings forecasts for next year.

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Taking into account the latest results, the solitary analyst covering Tidewater Midstream and Infrastructure provided consensus estimates of CA$1.52b revenue in 2025, which would reflect a perceptible 7.3% decline over the past 12 months. Losses are forecast to balloon 122% to CA$0.14 per share. Before this earnings announcement, the analyst had been modelling revenues of CA$1.98b and losses of CA$0.025 per share in 2025. So there's been quite a change-up of views after the recent consensus updates, withthe analyst making a serious cut to their revenue outlook while also expecting losses per share to increase.

Check out our latest analysis for Tidewater Midstream and Infrastructure

The average price target lifted 5.0% to CA$0.35, clearly signalling that the weaker revenue and EPS outlook are not expected to weigh on the stock over the longer term.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that revenue is expected to reverse, with a forecast 7.3% annualised decline to the end of 2025. That is a notable change from historical growth of 18% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 2.8% per year. It's pretty clear that Tidewater Midstream and Infrastructure'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 Tidewater Midstream and Infrastructure. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analyst believes the intrinsic value of the business is likely to improve over time.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

We don't want to rain on the parade too much, but we did also find 3 warning signs for Tidewater Midstream and Infrastructure (1 is potentially serious!) that you need to be mindful of.

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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.