Last week, you might have seen that Patterson-UTI Energy, Inc. (NASDAQ:PTEN) released its quarterly result to the market. The early response was not positive, with shares down 3.8% to US$5.86 in the past week. Revenues of US$1.3b beat analyst forecasts by7.8%, while the business broke even in terms of statutory earnings per share (EPS). 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 thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Our free stock report includes 3 warning signs investors should be aware of before investing in Patterson-UTI Energy. Read for free now.

After the latest results, the consensus from Patterson-UTI Energy's eleven analysts is for revenues of US$4.92b in 2025, which would reflect a perceptible 4.3% decline in revenue compared to the last year of performance. Losses are predicted to fall substantially, shrinking 96% to US$0.10. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$4.76b and losses of US$0.091 per share in 2025. So it's pretty clear the analysts have mixed opinions on Patterson-UTI Energy even after this update; although they upped their revenue numbers, it came at the cost of a notable increase in per-share losses.

Check out our latest analysis for Patterson-UTI Energy

Spiting the revenue upgrading, the average price target fell 5.8% to US$9.39, clearly signalling that higher forecast losses are a valuation concern. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Patterson-UTI Energy analyst has a price target of US$13.00 per share, while the most pessimistic values it at US$8.00. 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.

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. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 5.7% by the end of 2025. This indicates a significant reduction from annual growth of 34% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 3.3% annually for the foreseeable future. It's pretty clear that Patterson-UTI Energy's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at Patterson-UTI Energy. Fortunately, they also upgraded their revenue estimates, although our data indicates it is expected to perform worse than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

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 estimates - from multiple Patterson-UTI Energy analysts - going out to 2027, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 3 warning signs with Patterson-UTI Energy , and understanding these should be part of your investment process.

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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.