Earnings Beat: StealthGas Inc. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

StealthGas Inc. (NASDAQ:GASS) just released its latest second-quarter results and things are looking bullish. StealthGas delivered a significant beat to revenue and earnings per share (EPS) expectations, hitting US$47m-20% above indicated-andUS$0.55-83% above forecasts- respectively This is an important time for investors, as they can track a company's performance in its report, look at what expert is forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analyst latest (statutory) post-earnings forecasts for next year.

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After the latest results, the consensus from StealthGas' one analyst is for revenues of US$168.0m in 2025, which would reflect a perceptible 3.0% decline in revenue compared to the last year of performance. Statutory earnings per share are predicted to increase 4.2% to US$1.64. Yet prior to the latest earnings, the analyst had been anticipated revenues of US$168.8m and earnings per share (EPS) of US$1.58 in 2025. So the consensus seems to have become somewhat more optimistic on StealthGas' earnings potential following these results.

Check out our latest analysis for StealthGas

The analyst has been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 25% to US$10.00.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the StealthGas' past performance and to peers in the same industry. We would highlight that revenue is expected to reverse, with a forecast 5.9% annualised decline to the end of 2025. That is a notable change from historical growth of 2.6% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 3.7% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - StealthGas is expected to lag the wider industry.

The Bottom Line

The most important thing here is that the analyst upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards StealthGas following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was also a nice increase in the price target, with the analyst clearly feeling that the intrinsic value of the business is improving.

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 analyst estimates for StealthGas going out as far as 2026, and you can see them free on our platform here.

Even so, be aware that StealthGas is showing 1 warning sign in our investment analysis , you should know about...

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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.