Yahoo Finance Analyst Estimates: Here's What Brokers Think Of Civeo Corporation (NYSE:CVEO) After Its First-Quarter Report
It's been a mediocre week for Civeo Corporation (NYSE:CVEO) shareholders, with the stock dropping 11% to US$23.22 in the week since its latest first-quarter results. Revenues of US$166m beat expectations by a respectable 7.4%, although statutory losses per share increased. Civeo lost US$0.35, which was 78% more than what the analysts had included in their models. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
View our latest analysis for Civeo
Following the recent earnings report, the consensus from three analysts covering Civeo is for revenues of US$666.0m in 2024. This implies a small 4.8% decline in revenue compared to the last 12 months. Statutory earnings per share are expected to plunge 86% to US$0.31 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$653.6m and earnings per share (EPS) of US$0.14 in 2024. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the massive increase in earnings per share expectations following these results.
The consensus price target was unchanged at US$31.50, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Civeo, with the most bullish analyst valuing it at US$33.00 and the most bearish at US$30.00 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
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 6.3% annualised decline to the end of 2024. That is a notable change from historical growth of 8.7% 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 6.7% per year. It's pretty clear that Civeo's revenues are expected to perform substantially worse than the wider industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Civeo's earnings potential next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Civeo's 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 said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Civeo going out to 2026, and you can see them free on our platform here.
Plus, you should also learn about the 3 warning signs we've spotted with Civeo (including 1 which is a bit unpleasant) .
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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.
