Analyst’s Recommendation on Sanchez Energy Corp. (SN)

Analysts are weighing in on how Sanchez Energy Corp (NYSE:SN), might perform in the near term. Wall Street analysts have a much less favorable assessment of the stock, with a mean rating of 2.5. The stock is rated as buy by 5 analysts, with 2 outperform and 10 hold rating. The rating score is on a scale of 1 to 5 where 1 stands for strong buy and 5 stands for strong sell.

For the current quarter, the 17.00 analysts offering adjusted EPS forecast have a consensus estimate of $-0.09 a share, which would compare with $-0.43 in the same quarter last year. They have a high estimate of $0.04 and a low estimate of $-0.41. Revenue for the period is expected to total nearly $119.38M from $141.13M the year-ago period.

For the full year, 14.00 Wall Street analysts forecast this company would deliver earnings of -0.46 per share, with a high estimate of $-0.14 and a low estimate of $-0.95. It had reported earnings per share of $-1.85 in the corresponding quarter of the previous year. Revenue for the period is expected to total nearly $448.86M versus 475.78M in the preceding year.

The analysts project the company to maintain annual growth of around 10.00% percent over the next five years as compared to an average growth rate of 8.97% percent expected for its competitors in the same industry.

Among the 15 analysts Data provided by Thomson/First Call tracks, the 12-month average price target for SN is $8.43 but some analysts are projecting the price to go as high as $12.00. If the optimistic analysts are correct, that represents a 33 percent upside potential from the recent closing price of $9.02. Some sell-side analysts, particularly the bearish ones, have called for $5.00 price targets on shares of Sanchez Energy Corp (NYSE:SN).

In the last reported results, the company reported earnings of $-0.43 per share, while analysts were calling for share earnings of $-0.57. It was an earnings surprise of 24.60%percent. In the matter of earnings surprises, the term Cockroach Effect is often implied. Cockroach Effect is a market theory that suggests that when a company reveals bad news to the public, there may be many more related negative events that have yet to be revealed. In the case of earnings surprises, if a company is suggesting a negative earnings surprise it means there are more to come.

Sanchez Energy Corporation, an independent exploration and production company, engages in the exploration, acquisition, and development of oil and natural gas resources in the onshore U.S. Gulf Coast. It holds a 93% working interest in the Eagle Ford Shale, which consists of approximately 200,000 net leasehold acres in the oil and condensate, or black oil and volatile oil located in South Texas; and a 65% working interest in the Tuscaloosa Marine Shale covering an area of approximately 62,000 net leasehold acres situated in Mississippi and Louisiana. The company was founded in 2011 and is headquartered in Houston, Texas.