SilverBow Resources, Inc. Just Beat EPS By 81%: Here's What Analysts Think Will Happen Next
Investors in SilverBow Resources, Inc. (NYSE:SBOW) had a good week, as its shares rose 8.6% to close at US$29.79 following the release of its yearly results. It looks to have been a decent result overall - while revenue fell marginally short of analyst estimates at US$652m, statutory earnings beat expectations by a notable 81%, coming in at US$12.63 per share. 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.
See our latest analysis for SilverBow Resources
After the latest results, the five analysts covering SilverBow Resources are now predicting revenues of US$1.17b in 2024. If met, this would reflect a major 80% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to plummet 21% to US$9.20 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$1.18b and earnings per share (EPS) of US$9.29 in 2024. 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.
With no major changes to earnings forecasts, the consensus price target fell 6.9% to US$44.67, suggesting that the analysts might have previously been hoping for an earnings upgrade. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic SilverBow Resources analyst has a price target of US$55.00 per share, while the most pessimistic values it at US$34.00. 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.
Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting SilverBow Resources' growth to accelerate, with the forecast 80% annualised growth to the end of 2024 ranking favourably alongside historical growth of 27% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 1.8% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect SilverBow Resources 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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.
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 SilverBow Resources analysts - going out to 2026, and you can see them free on our platform here.
It is also worth noting that we have found 3 warning signs for SilverBow Resources (1 shouldn't be ignored!) that you need to take into consideration.
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.
