Yahoo Finance Earnings Update: Here's Why Analysts Just Lifted Their SEACOR Marine Holdings Inc. (NYSE:SMHI) Price Target To US$17.00
SEACOR Marine Holdings Inc. (NYSE:SMHI) came out with its first-quarter results last week, and we wanted to see how the business is performing and what industry forecasts think of the company following this report. It was a pretty bad result overall; while revenues were in line with expectations at US$63m, statutory losses exploded to US$0.84 per share. This is an important time for investors, as they can track a company's performance in its report, look at what expert is 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 estimate to see what could be in store for next year.
View our latest analysis for SEACOR Marine Holdings
Taking into account the latest results, SEACOR Marine Holdings' solitary analyst currently expect revenues in 2024 to be US$277.6m, approximately in line with the last 12 months. Losses are forecast to balloon 31% to US$1.08 per share. Before this latest report, the consensus had been expecting revenues of US$279.9m and US$0.70 per share in losses. So it's pretty clear the analyst has mixed opinions on SEACOR Marine Holdings even after this update; although they reconfirmed their revenue numbers, it came at the cost of a regrettable increase in per-share losses.
Although the analyst are now forecasting higher losses, the average price target rose 240% to 5, which could indicate that these losses are expected to be "one-off", or are not anticipated to have a longer-term impact on the business.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that revenue is expected to reverse, with a forecast 1.6% annualised decline to the end of 2024. That is a notable change from historical growth of 9.7% 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 7.6% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - SEACOR Marine Holdings is expected to lag the wider industry.
The Bottom Line
The most important thing to take away is that the analyst increased 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 SEACOR Marine Holdings' revenue is expected to perform worse than the wider industry. There was also a nice increase in the price target, with the analyst clearly feeling that the intrinsic value of the business is improving.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have analyst estimates for SEACOR Marine Holdings going out as far as 2025, and you can see them free on our platform here.
Don't forget that there may still be risks. For instance, we've identified 1 warning sign for SEACOR Marine Holdings that you should be aware of.
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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.
