Crescent Energy Company Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

Explore Crescent Energy's Fair Values from the Community and select yours

Last week, you might have seen that Crescent Energy Company (NYSE:CRGY) released its second-quarter result to the market. The early response was not positive, with shares down 2.3% to US$9.23 in the past week. Revenues were US$898m, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at US$0.60, an impressive 214% ahead of estimates. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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After the latest results, the nine analysts covering Crescent Energy are now predicting revenues of US$3.66b in 2025. If met, this would reflect a reasonable 5.6% improvement in revenue compared to the last 12 months. Per-share earnings are expected to surge 1,140% to US$1.12. In the lead-up to this report, the analysts had been modelling revenues of US$3.65b and earnings per share (EPS) of US$0.84 in 2025. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the very substantial lift in earnings per share expectations following these results.

View our latest analysis for Crescent Energy

There's been no major changes to the consensus price target of US$14.23, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Crescent Energy at US$20.00 per share, while the most bearish prices it at US$10.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Crescent Energy's rate of growth is expected to accelerate meaningfully, with the forecast 11% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 5.7% p.a. over the past three years. Compare this with other companies in the same industry, which are forecast to grow their revenue 3.7% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Crescent Energy to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Crescent Energy's earnings potential next year. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at US$14.23, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Crescent Energy. Long-term earnings power is much more important than next year's profits. We have forecasts for Crescent Energy going out to 2027, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 3 warning signs for Crescent Energy (2 are a bit concerning!) that you should be aware of.

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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.