Yahoo Finance Here's What Analysts Are Forecasting For Oceaneering International, Inc. (NYSE:OII) After Its Third-Quarter Results
Shareholders will be ecstatic, with their stake up 24% over the past week following Oceaneering International, Inc.'s (NYSE:OII) latest quarterly results. The results don't look great, especially considering that statutory losses grew 135% toUS$0.80 per share. Revenues of US$440m did beat expectations by 4.9%, but it looks like a bit of a cold comfort. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
See our latest analysis for Oceaneering International
After the latest results, the consensus from Oceaneering International's 13 analysts is for revenues of US$1.70b in 2021, which would reflect an uneasy 13% decline in sales compared to the last year of performance. The loss per share is expected to greatly reduce in the near future, narrowing 88% to US$0.86. Before this latest report, the consensus had been expecting revenues of US$1.66b and US$1.38 per share in losses. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a loss per share in particular.
Despite these upgrades,the analysts have not made any major changes to their price target of US$6.90, implying that their latest estimates don't have a long term impact on what they think the stock is worth. 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. Currently, the most bullish analyst values Oceaneering International at US$10.00 per share, while the most bearish prices it at US$4.75. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Oceaneering International's past performance and to peers in the same industry. One more thing stood out to us about these estimates, and it's the idea that Oceaneering International'sdecline is expected to accelerate, with revenues forecast to fall 13% next year, topping off a historical decline of 9.1% a year over the past five years. Compare this against analyst estimates for companies in the wider industry, which suggest that revenues (in aggregate) are expected to grow 5.6% next year. So while a broad number of companies are forecast to decline, unfortunately Oceaneering International is expected to see its sales affected worse than other companies in the industry.
The Bottom Line
The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. Fortunately, they also upgraded their revenue estimates, although our data indicates sales are 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.
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 estimates - from multiple Oceaneering International analysts - going out to 2024, and you can see them free on our platform here.
That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with Oceaneering International (at least 1 which doesn't sit too well with us) , and understanding them should be part of your investment process.
This article by Simply Wall St is general in nature. 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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