There's been a notable change in appetite for Golar LNG Limited (NASDAQ:GLNG) shares in the week since its third-quarter report, with the stock down 10% to US$34.88. The result was fairly weak overall, with revenues of US$65m being 4.0% less than what the analysts had been modelling. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Check out our latest analysis for Golar LNG
Taking into account the latest results, the most recent consensus for Golar LNG from four analysts is for revenues of US$454.6m in 2025. If met, it would imply a major 66% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to shoot up 1,257% to US$1.76. Before this earnings report, the analysts had been forecasting revenues of US$480.9m and earnings per share (EPS) of US$2.16 in 2025. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a substantial drop in earnings per share numbers.
Despite the cuts to forecast earnings, there was no real change to the US$45.64 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. 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. Currently, the most bullish analyst values Golar LNG at US$56.00 per share, while the most bearish prices it at US$38.00. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
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. For example, we noticed that Golar LNG's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 50% growth to the end of 2025 on an annualised basis. That is well above its historical decline of 13% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 3.1% annually. Not only are Golar LNG's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Golar LNG. They also downgraded Golar LNG's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. The consensus price target held steady at US$45.64, 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. At Simply Wall St, we have a full range of analyst estimates for Golar LNG going out to 2026, and you can see them free on our platform here..
However, before you get too enthused, we've discovered 2 warning signs for Golar LNG (1 shouldn't be ignored!) that you should be aware of.
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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.
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