Seplat Energy Plc Just Recorded A 12% Revenue Beat: Here's What Analysts Think

Investors in Seplat Energy Plc (LON:SEPL) had a good week, as its shares rose 4.2% to close at UK£2.99 following the release of its quarterly results. Seplat Energy beat revenue forecasts by a solid 12% to hit US$779m. Statutory earnings per share came in at US$0.26, 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Taking into account the latest results, the four analysts covering Seplat Energy provided consensus estimates of US$2.27b revenue in 2026, which would reflect a definite 12% decline over the past 12 months. Statutory earnings per share are forecast to crater 49% to US$0.18 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$2.26b and earnings per share (EPS) of US$0.18 in 2026. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

See our latest analysis for Seplat Energy

Althoughthe analysts have revised their earnings forecasts for next year, they've also lifted the consensus price target 19% to UK£3.84, suggesting the revised estimates are not indicative of a weaker long-term future for the business. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Seplat Energy, with the most bullish analyst valuing it at UK£5.46 and the most bearish at UK£1.91 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Seplat Energy's past performance and to peers in the same industry. We would highlight that revenue is expected to reverse, with a forecast 9.8% annualised decline to the end of 2026. That is a notable change from historical growth of 26% 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 2.7% annually for the foreseeable future. It's pretty clear that Seplat Energy's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Seplat Energy's revenue is expected to perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that in mind, we wouldn't be too quick to come to a conclusion on Seplat Energy. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Seplat Energy going out to 2027, and you can see them free on our platform here..

And what about risks? Every company has them, and we've spotted 1 warning sign for Seplat Energy you should know about.

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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.