Nine Energy Service, Inc. (NYSE:NINE) Just Reported Earnings, And Analysts Cut Their Target Price
Explore Nine Energy Service's Fair Values from the Community and select yours
There's been a notable change in appetite for Nine Energy Service, Inc.( NYSE:NINE ) shares in the week since its quarterly report, with the stock down 12% to US$0.63. The results don't look great, especially considering that statutory losses grew 14% toUS$0.25 per share. Revenues of US$147,251,000 did beat expectations by 3.0%, but it looks like a bit of a cold comfort. The analyst typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analyst is expecting for next year.
Taking into account the latest results, Nine Energy Service's single analyst currently expect revenues in 2025 to be US$568.0m, approximately in line with the last 12 months. Losses are forecast to balloon 27% to US$1.07 per share. Yet prior to the latest earnings, the analyst had been forecasting revenues of US$554.0m and losses of US$0.94 per share in 2025. While this year's revenue estimates increased, there was also a considerable increase in loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.
View our latest analysis for Nine Energy Service
It will come as no surprise that expanding losses caused the consensus price target to fall 25% to US$0.75with the analyst implicitly ranking ongoing losses as a greater concern than growing revenues.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 3.2% by the end of 2025. This indicates a significant reduction from annual growth of 12% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 3.2% per year. It's pretty clear that Nine Energy Service's revenues are expected to perform substantially worse than the wider industry.
The Bottom Line
The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at Nine Energy Service. They also upgraded their revenue estimates for next year, even though it is expected to grow slower than the wider industry. Furthermore, the analyst also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.
With that in mind, we wouldn't be too quick to come to a conclusion on Nine Energy Service. 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.
Even so, be aware that Nine Energy Service is showing 5 warning signs in our investment analysis , and 2 of those are significant...
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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.
