U.S. markets closed
  • S&P 500

    4,163.26
    -22.21 (-0.53%)
     
  • Dow 30

    34,077.63
    -123.04 (-0.36%)
     
  • Nasdaq

    13,914.77
    -137.58 (-0.98%)
     
  • Russell 2000

    2,232.00
    -30.67 (-1.36%)
     
  • Crude Oil

    63.48
    +0.35 (+0.55%)
     
  • Gold

    1,771.20
    -9.00 (-0.51%)
     
  • Silver

    25.88
    -0.23 (-0.88%)
     
  • EUR/USD

    1.2039
    +0.0059 (+0.49%)
     
  • 10-Yr Bond

    1.6010
    +0.0280 (+1.78%)
     
  • GBP/USD

    1.3987
    +0.0147 (+1.06%)
     
  • USD/JPY

    108.1480
    -0.6350 (-0.58%)
     
  • BTC-USD

    56,524.63
    +377.70 (+0.67%)
     
  • CMC Crypto 200

    1,278.17
    -20.79 (-1.60%)
     
  • FTSE 100

    7,000.08
    -19.45 (-0.28%)
     
  • Nikkei 225

    29,685.37
    +2.00 (+0.01%)
     

Earnings Miss: Pioneer Natural Resources Company Missed EPS And Analysts Are Revising Their Forecasts

  • Oops!
    Something went wrong.
    Please try again later.
Simply Wall St
·4 min read
  • Oops!
    Something went wrong.
    Please try again later.

Investors in Pioneer Natural Resources Company (NYSE:PXD) had a good week, as its shares rose 7.5% to close at US$88.37 following the release of its third-quarter results. Revenues came in well ahead of expectations at US$1.8b, although statutory earnings per share fell badly short. Pioneer Natural Resources reported a loss of US$0.12 per share, whereas the analysts had previously expected a profit. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Pioneer Natural Resources

earnings-and-revenue-growth
earnings-and-revenue-growth

Taking into account the latest results, the current consensus from Pioneer Natural Resources' 20 analysts is for revenues of US$8.74b in 2021, which would reflect a solid 14% increase on its sales over the past 12 months. Per-share earnings are expected to shoot up 372% to US$4.96. Before this earnings report, the analysts had been forecasting revenues of US$7.55b and earnings per share (EPS) of US$4.82 in 2021. The analysts seem more optimistic after the latest results, with a nice increase in revenue and a small increase to earnings per share estimates.

Althoughthe analysts have upgraded their earnings estimates, there was no change to the consensus price target of US$127, suggesting that the forecast performance does not have a long term impact on the company's valuation. 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 Pioneer Natural Resources, with the most bullish analyst valuing it at US$162 and the most bearish at US$95.00 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

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. We would highlight that Pioneer Natural Resources' revenue growth is expected to slow, with forecast 14% increase next year well below the historical 24%p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 11% next year. So it's pretty clear that, while Pioneer Natural Resources' revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Pioneer Natural Resources' earnings potential next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. The consensus price target held steady at US$127, 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. We have estimates - from multiple Pioneer Natural Resources analysts - going out to 2024, and you can see them free on our platform here.

You still need to take note of risks, for example - Pioneer Natural Resources has 4 warning signs we think you should be aware of.

This article by Simply Wall St is general in nature. 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.