It's been a good week for Tidewater Inc. (NYSE:TDW) shareholders, because the company has just released its latest third-quarter results, and the shares gained 7.3% to US$78.91. Statutory earnings per share fell badly short of expectations, coming in at US$0.35, some 53% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at US$360m. 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.
After the latest results, the six analysts covering Tidewater are now predicting revenues of US$1.68b in 2027. If met, this would reflect a sizeable 23% improvement in revenue compared to the last 12 months. Statutory per share are forecast to be US$5.43, approximately in line with the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of US$1.71b and earnings per share (EPS) of US$5.98 in 2027. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.
See our latest analysis for Tidewater
The consensus price target held steady at US$97.63, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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. There are some variant perceptions on Tidewater, with the most bullish analyst valuing it at US$120 and the most bearish at US$75.00 per share. 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.
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. We would highlight that Tidewater's revenue growth is expected to slow, with the forecast 18% annualised growth rate until the end of 2027 being well below the historical 24% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 7.5% per year. Even after the forecast slowdown in growth, it seems obvious that Tidewater is also expected to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at US$97.63, with the latest estimates not enough to have an impact on their price targets.
With that in mind, we wouldn't be too quick to come to a conclusion on Tidewater. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Tidewater analysts - going out to 2028, and you can see them free on our platform here.
You should always think about risks though. Case in point, we've spotted 1 warning sign for Tidewater you should be aware of.
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