Yahoo Finance Here's What Analysts Are Forecasting For Nabors Industries Ltd. (NYSE:NBR) After Its First-Quarter Results
As you might know, Nabors Industries Ltd. (NYSE:NBR) recently reported its quarterly numbers. It was a pretty bad result overall; while revenues were in line with expectations at US$734m, statutory losses exploded to US$4.54 per share. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
View our latest analysis for Nabors Industries
Taking into account the latest results, the most recent consensus for Nabors Industries from seven analysts is for revenues of US$3.04b in 2024. If met, it would imply a reasonable 2.8% increase on its revenue over the past 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 62% to US$5.28. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$3.07b and losses of US$3.95 per share in 2024. While this year's revenue estimates held steady, there was also a regrettable increase in loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.
The consensus price target held steady at US$107, seemingly implying that the higher forecast losses are not expected to have a long term impact on the company's valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Nabors Industries analyst has a price target of US$150 per share, while the most pessimistic values it at US$88.00. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
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. One thing stands out from these estimates, which is that Nabors Industries is forecast to grow faster in the future than it has in the past, with revenues expected to display 3.7% annualised growth until the end of 2024. If achieved, this would be a much better result than the 0.7% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 7.6% annually for the foreseeable future. So although Nabors Industries' revenue growth is expected to improve, it is still expected to grow slower than the 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 Nabors Industries. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Nabors Industries' revenue is expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
With that in mind, we wouldn't be too quick to come to a conclusion on Nabors Industries. Long-term earnings power is much more important than next year's profits. We have forecasts for Nabors Industries going out to 2026, and you can see them free on our platform here.
You can also see whether Nabors Industries is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.
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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.
