KLX Energy Services Holdings, Inc. (NASDAQ:KLXE) Released Earnings Last Week And Analysts Lifted Their Price Target To US$5.00
KLX Energy Services Holdings, Inc. KLXE | 0.00 |
It's been a pretty great week for KLX Energy Services Holdings, Inc. (NASDAQ:KLXE) shareholders, with its shares surging 16% to US$3.92 in the week since its latest quarterly results. Revenue hit US$145m in line with forecasts, although the company reported a statutory loss per share of US$1.23 that was somewhat smaller than the analyst expected. This is an important time for investors, as they can track a company's performance in its report, look at what expert is forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analyst latest (statutory) post-earnings forecasts for next year.
Taking into account the latest results, the consensus forecast from KLX Energy Services Holdings' lone analyst is for revenues of US$647.5m in 2026. This reflects an okay 3.2% improvement in revenue compared to the last 12 months. Losses are supposed to decline, shrinking 14% from last year to US$3.23. Before this earnings announcement, the analyst had been modelling revenues of US$648.4m and losses of US$3.21 per share in 2026.
The consensus price target rose 25% to US$5.00, with the analyst increasing their valuations as the business executes in line with forecasts.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that KLX Energy Services Holdings' revenue growth is expected to slow, with the forecast 4.3% annualised growth rate until the end of 2026 being well below the historical 8.0% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 5.8% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than KLX Energy Services Holdings.
The Bottom Line
The most obvious conclusion is that the analyst made no changes to their forecasts for a loss next year. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analyst believes the intrinsic value of the business is likely to improve over time.
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 analyst estimates for KLX Energy Services Holdings going out as far as 2027, and you can see them 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.
