Some Oil States International, Inc. (NYSE:OIS) Analysts Just Made A Major Cut To Next Year's Estimates
The latest analyst coverage could presage a bad day for Oil States International, Inc. (NYSE:OIS), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Revenue and earnings per share (EPS) forecasts were both revised downwards, with the analysts seeing grey clouds on the horizon.
Following the latest downgrade, the current consensus, from the 14 analysts covering Oil States International, is for revenues of US$656m in 2020, which would reflect a painful 34% reduction in Oil States International's sales over the past 12 months. Losses are predicted to fall substantially, shrinking 54% to US$4.85. Yet before this consensus update, the analysts had been forecasting revenues of US$748m and losses of US$1.35 per share in 2020. So there's been quite a change-up of views after the recent consensus updates, with the analysts making a serious cut to their revenue forecasts while also expecting losses per share to increase.
View our latest analysis for Oil States International
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. One more thing stood out to us about these estimates, and it's the idea that Oil States International'sdecline is expected to accelerate, with revenues forecast to fall 34% next year, topping off a historical decline of 6.0% a year over the past five years. Compare this against analyst estimates for companies in the wider industry, which suggest that revenues (in aggregate) are expected to grow 0.05% next year. So while a broad number of companies are forecast to decline, unfortunately Oil States International is expected to see its sales affected worse than other companies in the industry.
The Bottom Line
The most important thing to note from this downgrade is that the consensus increased its forecast losses this year, suggesting all may not be well at Oil States International. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that Oil States International's revenues are expected to grow slower than the wider market. Given the serious cut to this year's outlook, it's clear that analysts have turned more bearish on Oil States International, and we wouldn't blame shareholders for feeling a little more cautious themselves.
Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Oil States International analysts - going out to 2024, and you can see them free on our platform here.
Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.
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