Stolt-Nielsen Limited Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

Stolt-Nielsen Limited (OB:SNI) investors will be delighted, with the company turning in some strong numbers with its latest results. Stolt-Nielsen beat earnings, with revenues hitting US$713m, ahead of expectations, and statutory earnings per share outperforming analyst reckonings by a solid 14%. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Following last week's earnings report, Stolt-Nielsen's four analysts are forecasting 2025 revenues to be US$2.80b, approximately in line with the last 12 months. Statutory earnings per share are forecast to fall 15% to US$6.66 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$2.69b and earnings per share (EPS) of US$6.10 in 2025. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.

See our latest analysis for Stolt-Nielsen

Despite these upgrades,the analysts have not made any major changes to their price target of kr401, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Stolt-Nielsen, with the most bullish analyst valuing it at kr491 and the most bearish at kr319 per share. With such a wide range in price targets, analysts are almost certainly betting on widely divergent outcomes in the underlying business. 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.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 2.2% by the end of 2025. This indicates a significant reduction from annual growth of 9.2% 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. The forecasts do look bearish for Stolt-Nielsen, since they're expecting it to shrink faster than the industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Stolt-Nielsen following these results. They also upgraded their estimates, with revenue apparently performing well, although it is expected to lag the wider industry this year. The consensus price target held steady at kr401, 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 forecasts for Stolt-Nielsen 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 4 warning signs for Stolt-Nielsen (1 is significant!) 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.