Party Time: Brokers Just Made Major Increases To Their Permian Resources Corporation (NYSE:PR) Earnings Forecasts

Permian Resources Corporation (NYSE:PR) shareholders will have a reason to smile today, with the analysts making substantial upgrades to next year's statutory forecasts. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with analysts modelling a real improvement in business performance.

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Following the upgrade, the current consensus from Permian Resources' five analysts is for revenues of US$7.9b in 2027 which - if met - would reflect a huge 25% increase on its sales over the past 12 months. Statutory earnings per share are presumed to leap 63% to US$3.10. Prior to this update, the analysts had been forecasting revenues of US$7.0b and earnings per share (EPS) of US$2.52 in 2027. So we can see there's been a pretty clear increase in analyst sentiment in recent times, with both revenues and earnings per share receiving a decent lift in the latest estimates.

Check out our latest analysis for Permian Resources

Despite these upgrades, the analysts have not made any major changes to their price target of US$28.86, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's pretty clear that there is an expectation that Permian Resources' revenue growth will slow down substantially, with revenues to the end of 2027 expected to display 19% growth on an annualised basis. This is compared to a historical growth rate of 31% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 0.3% per year. Even after the forecast slowdown in growth, it seems obvious that Permian Resources is also expected to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for next year. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. The lack of change in the price target is puzzling, but with a serious upgrade to next year's earnings expectations, it might be time to take another look at Permian Resources.

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 Permian Resources going out to 2027, and you can see them free on our platform here..

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership.

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