Results: Bristow Group Inc. Beat Earnings Expectations And Analysts Now Have New Forecasts

Last week, you might have seen that Bristow Group Inc. (NYSE:VTOL) released its second-quarter result to the market. The early response was not positive, with shares down 8.7% to US$26.81 in the past week. Revenues were US$307m, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at US$0.58, an impressive 176% ahead of estimates. 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've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Our analysis indicates that VTOL is potentially overvalued!

Taking into account the latest results, the most recent consensus for Bristow Group from two analysts is for revenues of US$1.24b in 2023 which, if met, would be a credible 7.7% increase on its sales over the past 12 months. Statutory earnings per share are predicted to leap 124% to US$1.29. Before this earnings announcement, the analysts had been modelling revenues of US$1.25b and losses of US$0.21 per share in 2023. Although we saw no serious change to the revenue outlook, the analysts have definitely increased their earnings estimates, estimating a profit next year, compared to previous forecasts of a loss. So it seems like the consensus has become substantially more bullish on Bristow Group.

The consensus price target fell 8.1% to US$39.50, suggesting the increase in earnings forecasts was not enough to offset other the analysts concerns.

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. For example, we noticed that Bristow Group's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 16% growth to the end of 2023 on an annualised basis. That is well above its historical decline of 4.6% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 11% per year. Not only are Bristow Group's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that there's been a clear step-change in belief around the business' prospects, with the analysts now expecting Bristow Group to become profitable next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Bristow Group going out as far as 2025, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 2 warning signs for Bristow Group you should know about.

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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.