ProPetro Holding Corp. Just Missed Earnings With A Surprise Loss - Here Are Analysts Latest Forecasts

It's been a good week for ProPetro Holding Corp. (NYSE:PUMP) shareholders, because the company has just released its latest quarterly results, and the shares gained 4.3% to US$9.21. Revenues came in at US$357m, in line with estimates, while ProPetro Holding reported a statutory loss of US$0.03 per share, well short of prior analyst forecasts for a profit. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for ProPetro Holding

Taking into account the latest results, ProPetro Holding's seven analysts currently expect revenues in 2024 to be US$1.51b, approximately in line with the last 12 months. Per-share earnings are expected to shoot up 20% to US$0.39. In the lead-up to this report, the analysts had been modelling revenues of US$1.51b and earnings per share (EPS) of US$0.45 in 2024. So there's definitely been a decline in sentiment after the latest results, noting the real cut to new EPS forecasts.

The consensus price target held steady at US$11.22, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic ProPetro Holding analyst has a price target of US$13.00 per share, while the most pessimistic values it at US$8.50. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await ProPetro Holding shareholders.

Of course, another way to look at these forecasts is to place them into context against the industry itself. Over the past five years, revenues have declined around 2.4% annually. Worse, forecasts are essentially predicting the decline to accelerate, with the estimate for an annualised 3.1% decline in revenue until the end of 2024. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 7.4% per year. So while a broad number of companies are forecast to grow, unfortunately ProPetro Holding is expected to see its revenue affected worse than other companies in the industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for ProPetro Holding. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that ProPetro Holding's revenue is expected to perform worse than the wider 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.

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 forecasts for ProPetro Holding going out to 2026, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 3 warning signs for ProPetro Holding 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.

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