Yahoo Finance Helmerich & Payne, Inc. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions
Helmerich & Payne, Inc. (NYSE:HP) defied analyst predictions to release its quarterly results, which were ahead of market expectations. Helmerich & Payne beat earnings, with revenues hitting US$698m, ahead of expectations, and statutory earnings per share outperforming analyst reckonings by a solid 15%. 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.
Check out our latest analysis for Helmerich & Payne
Taking into account the latest results, the most recent consensus for Helmerich & Payne from 14 analysts is for revenues of US$2.81b in 2025. If met, it would imply a reasonable 3.1% increase on its revenue over the past 12 months. Per-share earnings are expected to increase 2.3% to US$3.54. In the lead-up to this report, the analysts had been modelling revenues of US$2.82b and earnings per share (EPS) of US$3.60 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$44.56. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Helmerich & Payne analyst has a price target of US$53.00 per share, while the most pessimistic values it at US$36.00. 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. It's pretty clear that there is an expectation that Helmerich & Payne's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 2.4% growth on an annualised basis. This is compared to a historical growth rate of 4.4% 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 7.2% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Helmerich & Payne.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will 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.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Helmerich & Payne going out to 2026, and you can see them free on our platform here.
Before you take the next step you should know about the 1 warning sign for Helmerich & Payne that we have uncovered.
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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.
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