Stock Analysis

News Flash: Analysts Just Made A Notable Upgrade To Their OMV Petrom S.A. (BVB:SNP) Forecasts

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Shareholders in OMV Petrom S.A. (BVB:SNP) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The analysts have sharply increased their revenue numbers, with a view that OMV Petrom will make substantially more sales than they'd previously expected.

After the upgrade, the consensus from OMV Petrom's six analysts is for revenues of RON40b in 2023, which would reflect a definite 17% decline in sales compared to the last year of performance. Statutory earnings per share are anticipated to crater 30% to RON0.12 in the same period. Before this latest update, the analysts had been forecasting revenues of RON36b and earnings per share (EPS) of RON0.11 in 2023. The most recent forecasts are noticeably more optimistic, with a nice gain to revenue estimates and a lift to earnings per share as well.

Check out the opportunities and risks within the RO Oil and Gas industry.

BVB:SNP Earnings and Revenue Growth November 5th 2022

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that sales are expected to reverse, with a forecast 13% annualised revenue decline to the end of 2023. That is a notable change from historical growth of 12% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue decline 6.5% annually for the foreseeable future. The forecasts do look bearish for OMV Petrom, since they're expecting it to shrink faster than the industry.

The Bottom Line

The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for next year. They also upgraded their revenue estimates, with sales apparently performing well even though revenue growth expected to decline against the wider market next year. Seeing the dramatic upgrade to next year's forecasts, it might be time to take another look at OMV Petrom.

These earnings upgrades look like a sterling endorsement, but before diving in - you should know that we've spotted 3 potential concerns with OMV Petrom, including dilutive stock issuance over the past year. You can learn more, and discover the 2 other concerns we've identified, for free on our platform here.

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Find out whether OMV Petrom is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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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.