Analyst Estimates: Here's What Brokers Think Of Stolt-Nielsen Limited (OB:SNI) After Its Full-Year Report

It's been a good week for Stolt-Nielsen Limited (OB:SNI) shareholders, because the company has just released its latest yearly results, and the shares gained 5.4% to kr293. Stolt-Nielsen reported US$2.9b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$7.38 beat expectations, being 2.8% higher than what the analysts expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Stolt-Nielsen after the latest results.

See our latest analysis for Stolt-Nielsen

Following last week's earnings report, Stolt-Nielsen's six analysts are forecasting 2025 revenues to be US$2.85b, approximately in line with the last 12 months. Statutory earnings per share are expected to tumble 24% to US$5.61 in the same period. In the lead-up to this report, the analysts had been modelling revenues of US$2.84b and earnings per share (EPS) of US$6.18 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 consensus price target held steady at kr469, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Stolt-Nielsen at kr542 per share, while the most bearish prices it at kr421. So we wouldn't be assigning too much credibility to analyst price targets in this case, because there are clearly some widely different views on what kind of performance this business can generate. 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.

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 revenue is expected to slow, with a forecast annualised decline of 1.3% by the end of 2025. This indicates a significant reduction from annual growth of 9.8% over the last five years. Yet aggregate analyst estimates for other companies in the industry suggest that industry revenues are forecast to decline 0.2% per year. So it's pretty clear that Stolt-Nielsen's revenues are expected to shrink faster 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. The consensus also reconfirmed their revenue estimates, suggesting that it is performing in line with expectations. Plus, our data suggests that Stolt-Nielsen is expected to perform worse than the wider industry. The consensus price target held steady at kr469, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Stolt-Nielsen analysts - 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 3 warning signs for Stolt-Nielsen (1 is significant) 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.