Here's What Analysts Are Forecasting For KBR, Inc. (NYSE:KBR) After Its Annual Results

It's been a good week for KBR, Inc. (NYSE:KBR) shareholders, because the company has just released its latest annual results, and the shares gained 7.4% to US$59.28. Revenues came in at US$7.0b, in line with expectations, while statutory losses per share were substantially higher than expected, at US$1.96 per share. 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.

See our latest analysis for KBR

Taking into account the latest results, the current consensus from KBR's eleven analysts is for revenues of US$7.57b in 2024. This would reflect a meaningful 8.8% increase on its revenue over the past 12 months. KBR is also expected to turn profitable, with statutory earnings of US$3.02 per share. Before this earnings report, the analysts had been forecasting revenues of US$7.73b and earnings per share (EPS) of US$3.07 in 2024. So it looks like the analysts have become a bit less optimistic after the latest results announcement, with revenues expected to fall even as the company is supposed to maintain EPS.

The average price target was steady at US$68.28even though revenue estimates declined; likely suggesting the analysts place a higher value on earnings. 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 KBR at US$78.00 per share, while the most bearish prices it at US$62.00. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting KBR is an easy business to forecast or the the analysts are all using similar assumptions.

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 KBR's rate of growth is expected to accelerate meaningfully, with the forecast 8.8% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 6.9% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 6.4% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that KBR is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. They also downgraded KBR's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. Even so, earnings are more important to the intrinsic value of the business. The consensus price target held steady at US$68.28, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple KBR analysts - going out to 2026, and you can see them free on our platform here.

You can also view our analysis of KBR's balance sheet, and whether we think KBR is carrying too much debt, for free on our platform here.

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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.