The Golar LNG Limited (NASDAQ:GLNG) Annual Results Are Out And Analysts Have Published New Forecasts

Last week, you might have seen that Golar LNG Limited (NASDAQ:GLNG) released its full-year result to the market. The early response was not positive, with shares down 2.2% to US$20.78 in the past week. Overall the results were a little better than the analysts were expecting, with revenues beating forecasts by 4.0%to hit US$298m. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Golar LNG

Taking into account the latest results, the consensus forecast from Golar LNG's five analysts is for revenues of US$407.7m in 2024. This reflects a substantial 37% improvement in revenue compared to the last 12 months. Golar LNG is also expected to turn profitable, with statutory earnings of US$1.82 per share. Before this earnings report, the analysts had been forecasting revenues of US$398.8m and earnings per share (EPS) of US$1.83 in 2024. So it looks like there's been no major change in sentiment following the latest results, although the analysts have made a small increase to to revenue forecasts.

It may not be a surprise to see thatthe analysts have reconfirmed their price target of US$30.06, implying that the uplift in revenue is not expected to greatly contribute to Golar LNG's valuation in the near term. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Golar LNG, with the most bullish analyst valuing it at US$35.50 and the most bearish at US$25.00 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

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. For example, we noticed that Golar LNG's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 37% growth to the end of 2024 on an annualised basis. That is well above its historical decline of 15% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 1.7% annually. Not only are Golar LNG's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. The consensus price target held steady at US$30.06, 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 Golar LNG analysts - going out to 2025, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Golar LNG , and understanding it should be part of your investment process.

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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.