Select Water Solutions, Inc. Just Recorded A 14% EPS Beat: Here's What Analysts Are Forecasting Next

As you might know, Select Water Solutions, Inc. (NYSE:WTTR) just kicked off its latest first-quarter results with some very strong numbers. Select Water Solutions beat earnings, with revenues hitting US$374m, ahead of expectations, and statutory earnings per share outperforming analyst reckonings by a solid 14%. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

We've discovered 2 warning signs about Select Water Solutions. View them for free.

Taking into account the latest results, the current consensus from Select Water Solutions' four analysts is for revenues of US$1.51b in 2025. This would reflect a reasonable 3.5% increase on its revenue over the past 12 months. Per-share earnings are expected to jump 88% to US$0.64. In the lead-up to this report, the analysts had been modelling revenues of US$1.50b and earnings per share (EPS) of US$0.58 in 2025. Although the revenue estimates have not really changed, we can see there's been a substantial gain in earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.

View our latest analysis for Select Water Solutions

The consensus price target fell 5.0% to US$17.00, suggesting the increase in earnings forecasts was not enough to offset other the analysts concerns. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Select Water Solutions analyst has a price target of US$19.00 per share, while the most pessimistic values it at US$12.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

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 pretty clear that there is an expectation that Select Water Solutions' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 4.7% growth on an annualised basis. This is compared to a historical growth rate of 17% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 3.0% annually. Even after the forecast slowdown in growth, it seems obvious that Select Water Solutions is also expected to grow faster than the wider 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 Select Water Solutions following these results. 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. At Simply Wall St, we have a full range of analyst estimates for Select Water Solutions going out to 2027, and you can see them free on our platform here..

Even so, be aware that Select Water Solutions is showing 2 warning signs in our investment analysis , 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.