Analysts Are Updating Their Stolt-Nielsen Limited (OB:SNI) Estimates After Its Third-Quarter Results

Shareholders might have noticed that Stolt-Nielsen Limited (OB:SNI) filed its quarterly result this time last week. The early response was not positive, with shares down 4.7% to kr373 in the past week. Stolt-Nielsen reported in line with analyst predictions, delivering revenues of US$733m and statutory earnings per share of US$1.85, suggesting the business is executing well and in line with its plan. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for Stolt-Nielsen

Taking into account the latest results, Stolt-Nielsen's five analysts currently expect revenues in 2025 to be US$2.87b, approximately in line with the last 12 months. Statutory earnings per share are forecast to drop 10% to US$6.72 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$2.89b and earnings per share (EPS) of US$7.14 in 2025. 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.

It might be a surprise to learn that the consensus price target was broadly unchanged at kr501, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. 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 Stolt-Nielsen, with the most bullish analyst valuing it at kr531 and the most bearish at kr477 per share. 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. 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.

Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 0.3% by the end of 2025. This indicates a significant reduction from annual growth of 9.7% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 0.7% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Stolt-Nielsen is expected to lag 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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

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 Stolt-Nielsen going out to 2026, and you can see them free on our platform here..

Before you take the next step you should know about the 3 warning signs for Stolt-Nielsen (1 makes us a bit uncomfortable!) that we have uncovered.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.