KLX Energy Services Holdings, Inc. (NASDAQ:KLXE) Released Earnings Last Week And Analysts Lifted Their Price Target To US$5.00
Shareholders of KLX Energy Services Holdings, Inc.( NASDAQ:KLXE ) will be pleased this week, given that the stock price is up 16% to US$3.92 following its latest quarterly results. The results look positive overall; while revenues of US$145m were in line with analyst predictions, statutory losses were 3.1% smaller than expected, with KLX Energy Services Holdings losing US$1.23 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analyst is forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimate suggests is in store for next year.
Taking into account the latest results, the consensus forecast from KLX Energy Services Holdings' single analyst is for revenues of US$647.5m in 2026. This reflects a satisfactory 3.2% improvement in revenue compared to the last 12 months. Losses are expected to be contained, narrowing 14% from last year to US$3.23. Yet prior to the latest earnings, the analyst had been forecasting revenues of US$648.4m and losses of US$3.21 per share in 2026.
Check out our latest analysis for KLX Energy Services Holdings
The consensus price target rose 25% to US$5.00, with the analyst increasing their valuations as the business executes in line with forecasts.
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 KLX Energy Services Holdings' revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 4.3% growth on an annualised basis. This is compared to a historical growth rate of 8.0% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 5.8% annually. Factoring in the forecast slowdown in growth, it seems obvious that KLX Energy Services Holdings is also expected to grow slower than other industry participants.
The Bottom Line
The most important thing to take away is that the analyst reconfirmed their loss per share estimates for next year. Fortunately, the analyst also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that KLX Energy Services Holdings' revenue is expected to perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analyst believes the intrinsic value of the business is likely to improve over time.
With that in mind, we wouldn't be too quick to come to a conclusion on KLX Energy Services Holdings. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.
It is also worth noting that we have found 5 warning signs for KLX Energy Services Holdings (1 makes us a bit uncomfortable!) that you need to take into consideration.
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