Yahoo Finance TETRA Technologies, Inc. Just Missed Earnings - But Analysts Have Updated Their Models
Last week saw the newest yearly earnings release from TETRA Technologies, Inc. (NYSE:TTI), an important milestone in the company's journey to build a stronger business. It looks like a pretty bad result, all things considered. Although revenues of US$626m were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 23% to hit US$0.20 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
See our latest analysis for TETRA Technologies
After the latest results, the four analysts covering TETRA Technologies are now predicting revenues of US$675.8m in 2024. If met, this would reflect an okay 7.9% improvement in revenue compared to the last 12 months. Per-share earnings are expected to bounce 76% to US$0.34. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$674.6m and earnings per share (EPS) of US$0.45 in 2024. So there's definitely been a decline in sentiment after the latest results, noting the pretty serious reduction to new EPS forecasts.
The consensus price target held steady at US$7.50, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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 TETRA Technologies analyst has a price target of US$9.00 per share, while the most pessimistic values it at US$6.00. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await TETRA Technologies shareholders.
Of course, another way to look at these forecasts is to place them into context against the industry itself. For example, we noticed that TETRA Technologies' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 7.9% growth to the end of 2024 on an annualised basis. That is well above its historical decline of 7.8% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 7.6% per year. So while TETRA Technologies' revenues are expected to improve, it seems that it is expected to grow at about the same rate as the overall industry.
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall 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.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for TETRA Technologies going out to 2026, 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 TETRA Technologies 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.
