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Frank's International N.V. Just Reported Annual Earnings: Have Analysts Changed Their Mind On The Stock?

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Simply Wall St
·4 min read
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Frank's International N.V. (NYSE:FI) last week reported its latest annual results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Revenues of US$580m arrived in line with expectations, although statutory losses per share were US$1.05, an impressive 210% smaller than what broker models predicted. This is an important time for investors, as they can track a company's performance in its report, look at what top analysts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what analysts are expecting for next year.

Check out our latest analysis for Frank's International

NYSE:FI Past and Future Earnings, February 27th 2020
NYSE:FI Past and Future Earnings, February 27th 2020

Taking into account the latest results, the most recent consensus for Frank's International from five analysts is for revenues of US$626.2m in 2020, which is an okay 8.0% increase on its sales over the past 12 months. Statutory losses are forecast to balloon 98% to US$0.021 per share. Before this latest report, the consensus had been expecting revenues of US$636.7m and US$0.031 per share in losses. Although the revenue estimates have not really changed, we can see there's been a sizeable expansion in earnings per share expectations, suggesting that analysts have become more bullish after the latest result.

There's been no major changes to the consensus price target of US$6.34, suggesting that reduced loss estimates are not enough to have a long-term positive impact on the stock's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Frank's International at US$7.00 per share, while the most bearish prices it at US$6.00. Still, with such a tight range of estimates, it suggests analysts have a pretty good idea of what they think the company is worth.

It can be useful to take a broader overview by seeing how analyst forecasts compare, both to the Frank's International's past performance and to peers in the same market. For example, we noticed that Frank's International's rate of growth is expected to accelerate meaningfully, with revenues forecast to grow at 8.0%, well above its historical decline of 19% a year over the past five years. Compare this against analyst estimates for the wider market, which suggest that (in aggregate) market revenues are expected to grow 3.6% next year. Although Frank's International's revenues are expected to improve, it seems that analysts are also expecting it to grow faster than the wider market.

The Bottom Line

The most important thing to take away is that analysts increased their loss per share estimates for next year. Happily, there were no major changes to revenue forecasts, with analysts still expecting the business to grow faster than the wider market. The consensus price target held steady at US$6.34, with the latest estimates not enough to have an impact on analysts' estimated valuations.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Frank's International going out to 2023, and you can see them free on our platform here.

You can also see our analysis of Frank's International's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.