Yahoo Finance Total Energy Services Inc. Just Missed EPS By 33%: Here's What Analysts Think Will Happen Next
Total Energy Services Inc. (TSE:TOT) came out with its yearly results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. It looks like a pretty bad result, all things considered. Although revenues of CA$892m were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 33% to hit CA$1.01 per share. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
View our latest analysis for Total Energy Services
Taking into account the latest results, the consensus forecast from Total Energy Services' two analysts is for revenues of CA$956.8m in 2024. This reflects a credible 7.2% improvement in revenue compared to the last 12 months. Per-share earnings are expected to leap 71% to CA$1.78. In the lead-up to this report, the analysts had been modelling revenues of CA$983.0m and earnings per share (EPS) of CA$1.52 in 2024. Although the analysts have lowered their revenue forecasts, they've also made a nice gain to their earnings per share estimates, which implies there's been something of an uptick in sentiment following the latest results.
The consensus has made no major changes to the price target of CA$16.50, suggesting the forecast improvement in earnings is expected to offset the decline in revenues next year.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Total Energy Services' past performance and to peers in the same industry. It's clear from the latest estimates that Total Energy Services' rate of growth is expected to accelerate meaningfully, with the forecast 7.2% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 1.0% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to see a revenue decline of 11% annually. So it's clear with the acceleration in growth, Total Energy Services is expected to grow meaningfully faster than the wider industry.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Total Energy Services following these results. Sadly they also cut their revenue estimates, although at least the company is expected to perform a bit better than the wider industry. With that said, earnings are more important to the long-term value of the business. The consensus price target held steady at CA$16.50, with the latest estimates not enough to have an impact on their price targets.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.
And what about risks? Every company has them, and we've spotted 1 warning sign for Total Energy Services you should know about.
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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.
