This TXO Partners L.P. (NYSE:TXO) Analyst Is Way More Bearish Than They Used To Be

The analyst covering TXO Partners L.P. (NYSE:TXO) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for next year. Revenue and earnings per share (EPS) forecasts were both revised downwards, with the analyst seeing grey clouds on the horizon.

Following the latest downgrade, the lone analyst covering TXO Partners provided consensus estimates of US$279m revenue in 2024, which would reflect a considerable 16% decline on its sales over the past 12 months. Statutory earnings per share are anticipated to dive 53% to US$1.03 in the same period. Before this latest update, the analyst had been forecasting revenues of US$321m and earnings per share (EPS) of US$2.03 in 2024. Indeed, we can see that the analyst is a lot more bearish about TXO Partners' prospects, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.

View our latest analysis for TXO Partners

It'll come as no surprise then, to learn that the analyst has cut their price target 5.7% to US$27.67.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that sales are expected to reverse, with a forecast 13% annualised revenue decline to the end of 2024. That is a notable change from historical growth of 38% over the last three years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 0.02% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - TXO Partners is expected to lag the wider industry.

The Bottom Line

The most important thing to take away is that the analyst cut their earnings per share estimates, expecting a clear decline in business conditions. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. Given the scope of the downgrades, it would not be a surprise to see the market become more wary of the business.

Still, the long-term prospects of the business are much more relevant than next year's earnings. At least one analyst has provided forecasts out to 2025, which can be seen for 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.

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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.