Shareholders in Crescent Point Energy Corp. (TSE:CPG) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company’s business prospects.
Following the upgrade, the latest consensus from Crescent Point Energy’s dual analysts is for revenues of CA$4.9b in 2024, which would reflect a major 36% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to surge 265% to CA$1.63. Before this latest update, the analysts had been forecasting revenues of CA$3.7b and earnings per share (EPS) of CA$1.63 in 2024. It seems analyst sentiment has certainly become more bullish on revenues, even though they haven’t changed their view on earnings per share.
It may not be a surprise to see that the analysts have reconfirmed their price target of CA$14.95, implying that the uplift in sales is not expected to greatly contribute to Crescent Point Energy’s valuation in the near term.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting Crescent Point Energy’s growth to accelerate, with the forecast 28% annualised growth to the end of 2024 ranking favourably alongside historical growth of 5.1% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.6% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Crescent Point Energy to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that there’s been no major change in sentiment, with analysts reconfirming that earnings per share are expected to continue performing in line with their prior expectations. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Crescent Point Energy.
Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have analyst estimates for Crescent Point Energy going out as far as 2025, and you can see them free on our platform here.
We also provide an overview of the Crescent Point Energy Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.
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