Yahoo Finance Amplify Energy Corp. Just Reported A Surprise Loss: Here's What Analysts Think Will Happen Next
Shareholders in Amplify Energy Corp. (NYSE:AMPY) had a terrible week, as shares crashed 49% to US$2.13 in the week since its latest full-year results. Things were not great overall, with a surprise (statutory) loss of US$0.71 per share on revenues of US$276m, even though analysts had been expecting a profit. This is an important time for investors, as they can track a company's performance in its report, look at what top analysts 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 Amplify Energy
Taking into account the latest results, Amplify Energy's twin analysts currently expect revenues in 2020 to be US$275.9m, approximately in line with the last 12 months. Statutory losses are forecast to balloon 90% to US$0.12 per share. Yet prior to the latest earnings, analysts had been forecasting revenues of US$312.9m and earnings per share (EPS) of US$0.66 in 2020. There looks to have been a major change in sentiment regarding Amplify Energy's prospects following the latest results, with a real cut to to revenues and analysts now forecasting a loss instead of a profit.
The consensus price target fell 18% to US$8.38, with analysts clearly concerned about the company following the weaker revenue and earnings outlook.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. From these estimates it looks as though analysts expect the years of declining sales to come to an end, given the flat revenue forecast for next year. That would be a definite improvement, given that the past five years have seen sales shrink five years annually. Compare this against analyst estimates for the wider market, which suggest that (in aggregate) market revenues are expected to grow 4.5% next year. So it's pretty clear that, although revenues are improving, Amplify Energy is still expected to grow slower than the market.
The Bottom Line
The most important thing to take away is that analysts are expecting Amplify Energy to become unprofitable next year. Unfortunately, analysts also downgraded their revenue estimates, and our data indicates revenues are expected to perform worse than the wider market. Even so, earnings per share are more important to the intrinsic value of the business. Analysts also downgraded their price target, suggesting that the latest news has led analysts to become more pessimistic about the intrinsic value of the business.
Still, the long-term prospects of the business are much more relevant than next year's earnings. At least one analyst has provided forecasts out to 2021, which can be seen for free on our platform here.
You can also see whether Amplify Energy is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.
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