Forum Energy Gears Up to Report Q1 Earnings: What's in Store?

Forum Energy Technologies FET is set to report first-quarter earnings on May 2, before the opening bell.

Let us analyze the factors that are expected to have influenced FET’s performance in the first quarter of 2025.

Q1 Expectations for FET

The Zacks Consensus Estimate for Forum Energy’s earnings is pegged at 43 cents per share and that for revenues is pinned at $196.3 million. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

The Zacks Consensus Estimate for first-quarter 2025 earnings has witnessed no upward or downward movements in the past 30 days. The estimated figure indicates a 458.3% year-over-year upsurge. The Zacks Consensus Estimate for the company’s revenues implies a decline of 3% from the year-ago period’s actual.

Forum Energy Technologies, Inc. Price and EPS Surprise

 

Forum Energy Technologies, Inc. price-eps-surprise | Forum Energy Technologies, Inc. Quote

Factors to Consider

Forum Energy generates its income primarily through manufacturing and selling consumable and capital equipment products, along with a smaller portion from rental services and aftermarket technical services.

FET’s focus on niche markets, differentiated technologies and global reach under the "Beat the Market" strategy led to a 15% year-over-year increase in market share in 2024, as measured by revenue per global rig. Energy demand has continued to grow globally, supporting long-term upstream investment. FET’s exposure to the United States and international markets, particularly where revenue per rig has improved significantly, positions it to benefit from these trends.

However, Forum Energy experienced rising costs in the fourth quarter, driven primarily by higher cost of sales and increased operating expenses. These increased expenses, particularly related to impairment charges and higher operating expenses, contributed heavily to FET's net loss of $103.5 million for the fourth quarter.

Management also highlighted inflationary pressures and the impacts of commodity price volatility, noting that global drilling and completion activity is expected to decline 2-5% in 2025, which could continue to affect margins if cost pressures persist. First-quarter earnings are expected to have been affected by rising costs.

What Does Our Model Predict?

Our proven model does not conclusively predict an earnings beat for Forum Energy this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here.

Earnings ESP: This represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate. Earnings ESP for this company is 0.00%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Zacks Rank:  FET currently carries a Zacks Rank #3.

Stocks to Consider

Here are some firms from the energy space that you may want to consider, as these have the right combination of elements to post an earnings beat this time around.

Comstock Resources, Inc. CRK has an Earnings ESP of +5.86% and a Zacks Rank #3 at present. The company is scheduled to release earnings on April 30. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for CRK’s 2025 earnings per share indicates a 600% year-over-year surge. Valued at $5.46 billion, Comstock Resources’ shares have soared 84.1% in a year.

Cheniere Energy LNG is likely to come up with an earnings beat when it announces first-quarter 2025 results on May 8, before market open. It has an Earnings ESP of +0.32% and a Zacks Rank #3 at present.

The Zacks Consensus Estimate for first-quarter earnings is pinned at $2.96 per share. The company delivered an average earnings surprise of 74.4% in the trailing four quarters.

Devon Energy DVN is expected to come up with an earnings beat when it reports first-quarter results 2025 on May 6, after market close. It has an Earnings ESP of +1.71% and a Zacks Rank #3 at present.

The Zacks Consensus Estimate for first-quarter earnings is pinned at $1.25 per share. The Zacks Consensus Estimate for revenues is pegged at $4.4 billion, indicating year-over-year growth of 31.3%.

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This article originally published on Zacks Investment Research (zacks.com).

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