The Tidewater Midstream and Infrastructure Ltd. (TSE:TWM) Yearly Results Are Out And Analysts Have Published New Forecasts

It's been a pretty great week for Tidewater Midstream and Infrastructure Ltd. (TSE:TWM) shareholders, with its shares surging 13% to CA$1.06 in the week since its latest annual results. Revenues came in at CA$979m, in line with forecasts and the company reported a statutory loss of CA$0.10 per share, roughly 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 Tidewater Midstream and Infrastructure

After the latest results, the four analysts covering Tidewater Midstream and Infrastructure are now predicting revenues of CA$1.26b in 2021. If met, this would reflect a sizeable 29% improvement in sales compared to the last 12 months. Earnings are expected to improve, with Tidewater Midstream and Infrastructure forecast to report a statutory profit of CA$0.14 per share. In the lead-up to this report, the analysts had been modelling revenues of CA$1.26b and earnings per share (EPS) of CA$0.14 in 2021. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at CA$1.31. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Tidewater Midstream and Infrastructure, with the most bullish analyst valuing it at CA$1.50 and the most bearish at CA$0.90 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

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 Tidewater Midstream and Infrastructure's revenue growth is expected to slow, with the forecast 29% annualised growth rate until the end of 2021 being well below the historical 51% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 11% per year. Even after the forecast slowdown in growth, it seems obvious that Tidewater Midstream and Infrastructure is also expected to grow faster than the wider 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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Tidewater Midstream and Infrastructure going out to 2022, and you can see them free on our platform here.

Even so, be aware that Tidewater Midstream and Infrastructure is showing 3 warning signs in our investment analysis , and 1 of those is a bit concerning...

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