After Pioneer Natural Resources Company’s (NYSE:PXD) earnings announcement in September 2018, analyst forecasts seem fairly subdued, as a 3.4% rise in profits is expected in the upcoming year, compared with the higher past 5-year average growth rate of 19%. Currently with trailing-twelve-month earnings of US$827m, we can expect this to reach US$856m by 2020. Below is a brief commentary around Pioneer Natural Resources’s earnings outlook going forward, which may give you a sense of market sentiment for the company. Investors wanting to learn more about other aspects of the company should research its fundamentals here.
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What can we expect from Pioneer Natural Resources in the longer term?
The longer term view from the 24 analysts covering PXD is one of positive sentiment. Generally, broker analysts tend to make predictions for up to three years given the lack of visibility beyond this point. To understand the overall trajectory of PXD’s earnings growth over these next fews years, I’ve fitted a line through these analyst earnings forecast to determine an annual growth rate from the slope.
By 2022, PXD’s earnings should reach US$1.4b, from current levels of US$827m, resulting in an annual growth rate of 26%. This leads to an EPS of $13.27 in the final year of projections relative to the current EPS of $4.86. Margins are currently sitting at 16%, which is expected to expand to 18% by 2022.
Future outlook is only one aspect when you’re building an investment case for a stock. For Pioneer Natural Resources, there are three key factors you should look at:
- Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
- Valuation: What is Pioneer Natural Resources worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether Pioneer Natural Resources is currently mispriced by the market.
- Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Pioneer Natural Resources? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.