Earnings Miss: Nordic American Tankers Limited Missed EPS By 10% And Analysts Are Revising Their Forecasts
Nordic American Tankers Limited (NYSE:NAT) missed earnings with its latest yearly results, disappointing overly-optimistic forecasters. Nordic American Tankers missed earnings this time around, with US$262m revenue coming in 2.9% below what the analysts had modelled. Statutory earnings per share (EPS) of US$0.47 also fell short of expectations by 10%. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Check out our latest analysis for Nordic American Tankers
Following the latest results, Nordic American Tankers' four analysts are now forecasting revenues of US$284.9m in 2024. This would be a decent 8.7% improvement in revenue compared to the last 12 months. Per-share earnings are expected to swell 16% to US$0.55. Before this earnings report, the analysts had been forecasting revenues of US$297.9m and earnings per share (EPS) of US$0.65 in 2024. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a real cut to earnings per share estimates.
The analysts made no major changes to their price target of US$5.40, suggesting the downgrades are not expected to have a long-term impact on Nordic American Tankers' valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Nordic American Tankers, with the most bullish analyst valuing it at US$6.00 and the most bearish at US$4.50 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The analysts are definitely expecting Nordic American Tankers' growth to accelerate, with the forecast 8.7% annualised growth to the end of 2024 ranking favourably alongside historical growth of 0.4% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 1.8% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Nordic American Tankers is expected to grow much faster than its 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. They also downgraded Nordic American Tankers' revenue estimates, but industry data suggests that it is expected to grow faster 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 Nordic American Tankers 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 2 warning signs for Nordic American Tankers 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.
