NASDAQ:OAS) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company’s business prospects.” data-reactid=”28″>Shareholders in Oasis Petroleum Inc. (NASDAQ:OAS) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company’s business prospects.
Following the upgrade, the consensus from ten analysts covering Oasis Petroleum is for revenues of US$930m in 2020, implying a painful 35% decline in sales compared to the last 12 months. The loss per share is expected to ameliorate slightly, reducing to US$13.77. However, before this estimates update, the consensus had been expecting revenues of US$909m and US$13.78 per share in losses. There doesn’t appear to have been a major change in analyst sentiment following this consensus update, other than the small increase to revenue estimates.
View our latest analysis for Oasis Petroleum ” data-reactid=”30″> View our latest analysis for Oasis Petroleum
There were no major changes to the US$0.54 consensus price target despite the higher revenue estimates, with the analysts seeming to believe that ongoing losses have a larger impact on the valuation than growing sales.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Oasis Petroleum’s past performance and to peers in the same industry. We would highlight that sales are expected to reverse, with the forecast 35% revenue decline a notable change from historical growth of 24% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 9.6% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining – Oasis Petroleum is expected to lag the wider industry.
The Bottom Line
The most important thing here is that analysts reduced their loss per share estimates for this year, reflecting increased optimism around Oasis Petroleum’s prospects. Fortunately, they also upgraded their revenue estimates, and are forecasting revenues to grow slower than the wider market. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Oasis Petroleum.
to learn more about these forecasts.” data-reactid=”51″>It’s great to see the analysts upgrading their estimates, but the biggest highlight to us is that the business is expected to become profitable in the foreseeable future. For more information, you can click through to our free platform to learn more about these forecasts.
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Get in touch with us directly. Alternatively, email [email protected].” data-reactid=”53″>This article by Simply Wall St is general in nature. 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.
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