There's been a major selloff in KLX Energy Services Holdings, Inc. (NASDAQ:KLXE) shares in the week since it released its second-quarter report, with the stock down 21% to US$1.69. It looks like the results were pretty good overall. While revenues of US$167m were in line with analyst predictions, statutory losses were much smaller than expected, with KLX Energy Services Holdings losing US$0.41 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analyst is forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analyst has changed their mind on KLX Energy Services Holdings after the latest results.

After the latest results, the sole analyst covering KLX Energy Services Holdings are now predicting revenues of US$665.8m in 2026. If met, this would reflect a credible 4.8% improvement in revenue compared to the last 12 months. Losses are predicted to fall substantially, shrinking 71% to US$0.89. Before this latest report, the consensus had been expecting revenues of US$666.7m and US$3.20 per share in losses. While the revenue estimates were largely unchanged, sentiment seems to have improved, with the analyst upgrading their numbers and making a very favorable reduction to losses per share in particular.

The consensus price target fell 40% to US$3.00despite the forecast for smaller losses next year. It looks like the ongoing lack of profitability is starting to weigh on valuations.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The analyst is definitely expecting KLX Energy Services Holdings' growth to accelerate, with the forecast 9.7% annualised growth to the end of 2026 ranking favourably alongside historical growth of 3.6% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 7.2% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that KLX Energy Services Holdings is expected to grow much faster than its industry.

The Bottom Line

The most obvious conclusion is that the analyst made no changes to their forecasts for a loss next year. 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 fell measurably, with the analyst seemingly not reassured by the latest results, leading to a lower estimate of KLX Energy Services Holdings' future valuation.

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. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

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.