VAALCO Energy, Inc. (NYSE:EGY) just released its latest quarterly results and things are looking bullish. VAALCO Energy beat earnings, with revenues hitting US$110m, ahead of expectations, and statutory earnings per share outperforming analyst reckonings by a solid 17%. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Taking into account the latest results, the three analysts covering VAALCO Energy provided consensus estimates of US$358.4m revenue in 2025, which would reflect a disturbing 27% decline over the past 12 months. Statutory earnings per share are forecast to dive 46% to US$0.30 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$347.1m and earnings per share (EPS) of US$0.20 in 2025. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a considerable lift to earnings per share in particular.

Check out our latest analysis for VAALCO Energy

As a result, it might be a surprise to see thatthe analysts have cut their price target 8.7% to US$8.37, which could suggest the forecast improvement in performance is not expected to last. 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 VAALCO Energy, with the most bullish analyst valuing it at US$10.00 and the most bearish at US$7.10 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 34% by the end of 2025. This indicates a significant reduction from annual growth of 36% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 3.5% per year. It's pretty clear that VAALCO Energy's revenues are expected to perform substantially worse than the wider industry.