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Last week, you might have seen that Expro Group Holdings N.V. (NYSE:XPRO) released its second-quarter result to the market. The early response was not positive, with shares down 3.4% to US$11.77 in the past week. The results were positive, with revenue coming in at US$314m, beating analyst expectations by 5.2%. 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.
After the latest results, the four analysts covering Expro Group Holdings are now predicting revenues of US$1.21b in 2022. If met, this would reflect a meaningful 11% improvement in sales compared to the last 12 months. Earnings are expected to improve, with Expro Group Holdings forecast to report a statutory profit of US$0.04 per share. Before this earnings report, the analysts had been forecasting revenues of US$1.22b and earnings per share (EPS) of US$0.04 in 2022. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
The analysts reconfirmed their price target of US$16.70, showing that the business is executing well and in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Expro Group Holdings, with the most bullish analyst valuing it at US$19.00 and the most bearish at US$14.00 per share. This is a very narrow spread of estimates, implying either that Expro Group Holdings is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that Expro Group Holdings' revenue growth is expected to slow, with the forecast 23% annualised growth rate until the end of 2022 being well below the historical 71% growth over the last year. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 11% annually. Even after the forecast slowdown in growth, it seems obvious that Expro Group Holdings is also expected to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting sales are tracking in line with expectations - and our data suggests that revenues are 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.
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 Expro Group Holdings analysts - going out to 2023, and you can see them free on our platform here.
Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
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