Sea1 Offshore Inc. Just Missed Earnings - But Analysts Have Updated Their Models

Shareholders might have noticed that Sea1 Offshore Inc. (OB:SEA1) filed its full-year result this time last week. The early response was not positive, with shares down 3.3% to kr21.65 in the past week. Revenues were in line with forecasts, at US$341m, although statutory earnings per share came in 12% below what the analysts expected, at US$0.88 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Sea1 Offshore

After the latest results, the consensus from Sea1 Offshore's three analysts is for revenues of US$273.6m in 2025, which would reflect a considerable 20% decline in revenue compared to the last year of performance. Statutory earnings per share are forecast to crater 63% to US$0.42 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$270.6m and earnings per share (EPS) of US$0.45 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.

The average price target fell 11% to kr35.96, with reduced earnings forecasts clearly tied to a lower valuation estimate. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Sea1 Offshore analyst has a price target of kr43.19 per share, while the most pessimistic values it at kr29.98. As you can see the range of estimates is wide, with the lowest valuation coming in at less than half the most bullish estimate, suggesting there are some strongly diverging views on how analysts think this business will perform. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 20% by the end of 2025. This indicates a significant reduction from annual growth of 6.9% 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 3.4% annually for the foreseeable future. It's pretty clear that Sea1 Offshore's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Sea1 Offshore. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. 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 in mind, we wouldn't be too quick to come to a conclusion on Sea1 Offshore. 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 Sea1 Offshore going out to 2027, and you can see them free on our platform here..

We don't want to rain on the parade too much, but we did also find 5 warning signs for Sea1 Offshore (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.