Delek US Holdings, Inc. (NYSE:DK) Just Released Its Third-Quarter Earnings: Here's What Analysts Think
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Delek US Holdings, Inc. (NYSE:DK) just released its quarterly report and things are looking bullish. Revenues and losses per share were both better than expected, with revenues of US$3.0b leading estimates by 6.8%. Statutory losses were smaller than the analystsexpected, coming in at US$1.20 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
See our latest analysis for Delek US Holdings
After the latest results, the consensus from Delek US Holdings' seven analysts is for revenues of US$10.5b in 2025, which would reflect a sizeable 24% decline in revenue compared to the last year of performance. Losses are predicted to fall substantially, shrinking 63% to US$2.29. Before this latest report, the consensus had been expecting revenues of US$10.2b and US$2.53 per share in losses. It looks like there's been a modest increase in sentiment in the recent updates, with the analysts becoming a bit more optimistic in their predictions for both revenues and losses per share.
Despite these upgrades,the analysts have not made any major changes to their price target of US$20.29, implying that their latest estimates don't have a long term impact on what they think the stock is worth. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Delek US Holdings analyst has a price target of US$26.00 per share, while the most pessimistic values it at US$15.00. 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.
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. We would highlight that revenue is expected to reverse, with a forecast 20% annualised decline to the end of 2025. That is a notable change from historical growth of 18% 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 3.1% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Delek US Holdings is expected to lag the wider industry.