Stock Analysis

Growth Investors: Industry Analysts Just Upgraded Their Patterson-UTI Energy, Inc. (NASDAQ:PTEN) Revenue Forecasts By 36%

Source: Shutterstock

Celebrations may be in order for Patterson-UTI Energy, Inc. (NASDAQ:PTEN) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The analysts have sharply increased their revenue numbers, with a view that Patterson-UTI Energy will make substantially more sales than they'd previously expected.

After this upgrade, Patterson-UTI Energy's six analysts are now forecasting revenues of US$4.1b in 2023. This would be a substantial 33% improvement in sales compared to the last 12 months. Statutory earnings per share are forecast to be US$1.45, approximately in line with the last 12 months. Prior to this update, the analysts had been forecasting revenues of US$3.0b and earnings per share (EPS) of US$1.40 in 2023. The most recent forecasts are noticeably more optimistic, with a chunky increase in revenue estimates and a lift to earnings per share as well.

See our latest analysis for Patterson-UTI Energy

NasdaqGS:PTEN Earnings and Revenue Growth September 8th 2023

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. One thing stands out from these estimates, which is that Patterson-UTI Energy is forecast to grow faster in the future than it has in the past, with revenues expected to display 77% annualised growth until the end of 2023. If achieved, this would be a much better result than the 8.9% annual decline 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 9.0% annually. So it looks like Patterson-UTI Energy is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for this year. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Patterson-UTI Energy.

Still, the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Patterson-UTI Energy going out to 2025, 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.

Valuation is complex, but we're helping make it simple.

Find out whether Patterson-UTI Energy is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

View the Free Analysis

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at)

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.