Bristow Group Inc. Just Beat EPS By 140%: Here's What Analysts Think Will Happen Next

Shareholders of Bristow Group Inc. (NYSE:VTOL) will be pleased this week, given that the stock price is up 11% to US$37.73 following its latest quarterly results. Revenues were US$360m, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at US$0.96, an impressive 140% ahead of estimates. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Bristow Group

Following the latest results, Bristow Group's twin analysts are now forecasting revenues of US$1.42b in 2024. This would be a reasonable 6.0% improvement in revenue compared to the last 12 months. Per-share earnings are expected to bounce 89% to US$2.06. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$1.42b and earnings per share (EPS) of US$1.22 in 2024. Although the revenue estimates have not really changed, we can see there's been a very substantial lift in earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.

The consensus price target rose 15% to US$48.50, suggesting that higher earnings estimates flow through to the stock's valuation as well.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's clear from the latest estimates that Bristow Group's rate of growth is expected to accelerate meaningfully, with the forecast 12% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 1.2% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 7.2% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Bristow Group is expected to grow much faster than its industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Bristow Group following these results. 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. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

However, before you get too enthused, we've discovered 1 warning sign for Bristow Group 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.