Rattler Midstream LP Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

As you might know, Rattler Midstream LP (NASDAQ:RTLR) recently reported its quarterly numbers. It looks like a pretty bad result, all things considered. Although revenues of US$99m were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 39% to hit US$0.13 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are 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 analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Rattler Midstream

After the latest results, the ten analysts covering Rattler Midstream are now predicting revenues of US$406.4m in 2021. If met, this would reflect a reasonable 3.3% improvement in sales compared to the last 12 months. Per-share earnings are expected to surge 58% to US$0.93. Before this earnings report, the analysts had been forecasting revenues of US$406.4m and earnings per share (EPS) of US$0.93 in 2021. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

There were no changes to revenue or earnings estimates or the price target of US$12.15, suggesting that the company has met expectations in its recent result. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Rattler Midstream, with the most bullish analyst valuing it at US$15.00 and the most bearish at US$10.00 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Rattler Midstream's revenue growth is expected to slow, with the forecast 4.5% annualised growth rate until the end of 2021 being well below the historical 43% p.a. growth over the last three years. Compare this to the 482 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 4.5% per year. So it's pretty clear that, while Rattler Midstream's revenue growth is expected to slow, it's expected to grow roughly in line with the 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. Happily, there were no real changes to sales forecasts, with the business still expected to grow in line with the overall industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Rattler Midstream going out to 2023, and you can see them free on our platform here..

Plus, you should also learn about the 2 warning signs we've spotted with Rattler Midstream .

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This article by Simply Wall St is general in nature. 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.
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