Analysts' Revenue Estimates For Chord Energy Corporation (NASDAQ:CHRD) Are Surging Higher

Chord Energy Corporation (NASDAQ:CHRD) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The analysts have sharply increased their revenue numbers, with a view that Chord Energy will make substantially more sales than they'd previously expected.

Following this upgrade, Chord Energy's nine analysts are forecasting 2024 revenues to be US$3.9b, approximately in line with the last 12 months. Statutory earnings per share are anticipated to decline 15% to US$21.12 in the same period. Previously, the analysts had been modelling revenues of US$3.4b and earnings per share (EPS) of US$21.03 in 2024. It seems analyst sentiment has certainly become more bullish on revenues, even though they haven't changed their view on earnings per share.

See our latest analysis for Chord Energy

Even though revenue forecasts increased, there was no change to the consensus price target of US$184, suggesting the analysts are focused on earnings as the driver of value creation.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 1.2% by the end of 2024. This indicates a significant reduction from annual growth of 18% 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 1.3% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Chord Energy is expected to lag the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with analysts reconfirming that earnings per share are expected to continue performing in line with their prior expectations. Fortunately, they also upgraded their revenue estimates, and are forecasting revenues to grow slower than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Chord Energy.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have estimates - from multiple Chord Energy analysts - going out to 2026, and you can see them 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 that insiders are buying.

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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.