Cool Company Ltd. Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

It's been a sad week for Cool Company Ltd. (OB:CLCO), who've watched their investment drop 13% to kr71.90 in the week since the company reported its yearly result. The result was positive overall - although revenues of US$338m were in line with what the analysts predicted, Cool surprised by delivering a statutory profit of US$1.83 per share, modestly greater than expected. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Cool

Taking into account the latest results, the current consensus, from the four analysts covering Cool, is for revenues of US$325.5m in 2025. This implies a discernible 3.8% reduction in Cool's revenue over the past 12 months. Statutory earnings per share are expected to dive 50% to US$0.92 in the same period. In the lead-up to this report, the analysts had been modelling revenues of US$335.6m and earnings per share (EPS) of US$1.01 in 2025. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the small dip in earnings per share expectations.

The consensus price target fell 7.8% to kr87.42, with the weaker earnings outlook clearly leading valuation estimates. 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. The most optimistic Cool analyst has a price target of kr120 per share, while the most pessimistic values it at kr60.06. We would probably assign less value to the analyst forecasts in this situation, because such a wide range of estimates could imply that the future of this business is difficult to value accurately. As a result it might not be a great idea to make decisions based on the consensus price target, which is after all just an average of this wide range of estimates.

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 would highlight that revenue is expected to reverse, with a forecast 3.8% annualised decline to the end of 2025. That is a notable change from historical growth of 30% over the last three years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue decline 4.3% annually for the foreseeable future.

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. Unhappily, they also trimmed their revenue estimates, although the company is expected to grow at about the same rate as the wider industry next year. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Cool going out to 2027, and you can see them free on our platform here..

Don't forget that there may still be risks. For instance, we've identified 4 warning signs for Cool (3 are potentially serious) you should be aware 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.