Bearish: This Analyst Is Revising Their Geo Energy Resources Limited (SGX:RE4) Revenue and EPS Prognostications

Market forces rained on the parade of Geo Energy Resources Limited (SGX:RE4) shareholders today, when the covering analyst downgraded their forecasts for this year. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting the analyst has soured majorly on the business.

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Following the downgrade, the latest consensus from Geo Energy Resources' solo analyst is for revenues of US$573m in 2025, which would reflect a major 43% improvement in sales compared to the last 12 months. Per-share earnings are expected to shoot up 140% to US$0.063. Previously, the analyst had been modelling revenues of US$860m and earnings per share (EPS) of US$0.13 in 2025. It looks like analyst sentiment has declined substantially, with a pretty serious reduction to revenue estimates and a pretty serious decline to earnings per share numbers as well.

View our latest analysis for Geo Energy Resources

It'll come as no surprise then, to learn that the analyst has cut their price target 9.1% to US$0.48.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's clear from the latest estimates that Geo Energy Resources' rate of growth is expected to accelerate meaningfully, with the forecast 43% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 9.6% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue shrink 0.7% per year. It seems obvious that as part of the brighter growth outlook, Geo Energy Resources is expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analyst cut their earnings per share estimates, expecting a clear decline in business conditions. Unfortunately, they also downgraded their revenue estimates, and our data indicates sales are expected to outperform the wider market. Even so, earnings per share are more important to the intrinsic value of the business. With a serious cut to this year's expectations and a falling price target, we wouldn't be surprised if investors were becoming wary of Geo Energy Resources.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies backed by insiders.

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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.