PHX Energy Services Corp. Just Missed EPS By 26%: Here's What Analysts Think Will Happen Next

Shareholders in PHX Energy Services Corp. (TSE:PHX) had a terrible week, as shares crashed 24% to CA$10.27 in the week since its latest quarterly results. Results overall were not great, with earnings of CA$0.23 per share falling drastically short of analyst expectations. Meanwhile revenues hit CA$204m and were slightly better than forecasts. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

Taking into account the latest results, the current consensus from PHX Energy Services' three analysts is for revenues of CA$845.3m in 2027. This would reflect a solid 13% increase on its revenue over the past 12 months. Per-share earnings are expected to shoot up 31% to CA$1.37. Yet prior to the latest earnings, the analysts had been anticipated revenues of CA$833.0m and earnings per share (EPS) of CA$1.55 in 2027. So there's definitely been a decline in sentiment after the latest results, noting the real cut to new EPS forecasts.

Check out our latest analysis for PHX Energy Services

It might be a surprise to learn that the consensus price target was broadly unchanged at CA$15.17, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values PHX Energy Services at CA$15.50 per share, while the most bearish prices it at CA$15.00. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's pretty clear that there is an expectation that PHX Energy Services' revenue growth will slow down substantially, with revenues to the end of 2027 expected to display 9.9% growth on an annualised basis. This is compared to a historical growth rate of 13% over the past five years. Compare this to the 24 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 8.9% per year. So it's pretty clear that, while PHX Energy Services' revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for PHX Energy Services. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at CA$15.17, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for PHX Energy Services going out to 2028, and you can see them free on our platform here..

Don't forget that there may still be risks. For instance, we've identified 3 warning signs for PHX Energy Services (1 is potentially serious) you should be aware of.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.