Yahoo Finance Par Pacific Holdings, Inc. Just Missed Earnings With A Surprise Loss - Here Are Analysts Latest Forecasts
Last week, you might have seen that Par Pacific Holdings, Inc. (NYSE:PARR) released its quarterly result to the market. The early response was not positive, with shares down 4.5% to US$29.62 in the past week. The results don't look great, especially considering that the analysts had been forecasting a profit and Par Pacific Holdings delivered a statutory loss of US$0.06 per share. Revenues of US$2.0b did beat expectations by 4.4% though. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Check out our latest analysis for Par Pacific Holdings
Following the recent earnings report, the consensus from six analysts covering Par Pacific Holdings is for revenues of US$8.06b in 2024. This implies a noticeable 5.5% decline in revenue compared to the last 12 months. Statutory earnings per share are expected to plunge 51% to US$4.02 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$8.00b and earnings per share (EPS) of US$4.39 in 2024. 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.
The consensus price target held steady at US$40.17, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Par Pacific Holdings analyst has a price target of US$47.00 per share, while the most pessimistic values it at US$37.00. 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. We would highlight that revenue is expected to reverse, with a forecast 7.3% annualised decline to the end of 2024. That is a notable change from historical growth of 16% 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 2.2% annually for the foreseeable future. It's pretty clear that Par Pacific Holdings' revenues are expected to perform substantially worse 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, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Par Pacific Holdings' revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$40.17, with the latest estimates not enough to have an impact on their price targets.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Par Pacific Holdings going out to 2026, and you can see them free on our platform here.
Even so, be aware that Par Pacific Holdings is showing 4 warning signs in our investment analysis , and 1 of those is a bit concerning...
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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.
