Natural Gas Services Group, Inc. (NYSE:NGS) defied analyst predictions to release its quarterly results, which were ahead of market expectations. Natural Gas Services Group beat earnings, with revenues hitting US$48m, ahead of expectations, and statutory earnings per share outperforming analyst reckonings by a solid 19%. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Natural Gas Services Group after the latest results.

Following the latest results, Natural Gas Services Group's three analysts are now forecasting revenues of US$199.3m in 2026. This would be a meaningful 11% improvement in revenue compared to the last 12 months. Per-share earnings are expected to swell 18% to US$2.05. Before this earnings report, the analysts had been forecasting revenues of US$196.4m and earnings per share (EPS) of US$2.00 in 2026. So the consensus seems to have become somewhat more optimistic on Natural Gas Services Group's earnings potential following these results.

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 10% to US$52.00. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Natural Gas Services Group, with the most bullish analyst valuing it at US$55.00 and the most bearish at US$47.00 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Natural Gas Services Group's revenue growth is expected to slow, with the forecast 15% annualised growth rate until the end of 2026 being well below the historical 22% 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) 5.8% per year. Even after the forecast slowdown in growth, it seems obvious that Natural Gas Services Group is also expected to grow faster than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Natural Gas Services Group 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. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

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 Natural Gas Services Group going out to 2028, and you can see them free on our platform here.

You still need to take note of risks, for example - Natural Gas Services Group has 2 warning signs we think you should be aware of.

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.