The Consensus EPS Estimates For Paratus Energy Services Ltd. (OB:PLSV) Just Fell Dramatically

The latest analyst coverage could presage a bad day for Paratus Energy Services Ltd. (OB:PLSV), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting analysts have soured majorly on the business.

Following the latest downgrade, the current consensus, from the three analysts covering Paratus Energy Services, is for revenues of US$167m in 2025, which would reflect a substantial 22% reduction in Paratus Energy Services' sales over the past 12 months. Statutory earnings per share are presumed to surge 157% to US$0.48. Previously, the analysts had been modelling revenues of US$194m and earnings per share (EPS) of US$0.59 in 2025. It looks like analyst sentiment has declined substantially, with a measurable cut to revenue estimates and a considerable drop in earnings per share numbers as well.

Check out our latest analysis for Paratus Energy Services

The consensus price target fell 11% to US$5.59, with the weaker earnings outlook clearly leading analyst valuation estimates. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Paratus Energy Services, with the most bullish analyst valuing it at US$6.13 and the most bearish at US$4.89 per share. This is a very narrow spread of estimates, implying either that Paratus Energy Services is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 22% by the end of 2025. This indicates a significant reduction from annual growth of 35% over the last three years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 2.6% annually for the foreseeable future. It's pretty clear that Paratus Energy Services' revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to take away is that analysts cut their earnings per share estimates, expecting a clear decline in business conditions. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. With a serious cut to this year's expectations and a falling price target, we wouldn't be surprised if investors were becoming wary of Paratus Energy Services.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have estimates - from multiple Paratus Energy Services analysts - going out to 2027, and you can see them free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership.

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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.