Yahoo Finance Myers Industries, Inc. Just Missed EPS By 72%: Here's What Analysts Think Will Happen Next
As you might know, Myers Industries, Inc. (NYSE:MYE) last week released its latest quarterly, and things did not turn out so great for shareholders. Unfortunately, Myers Industries delivered a serious earnings miss. Revenues of US$207m were 14% below expectations, and statutory earnings per share of US$0.09 missed estimates by 72%. This is an important time for investors, as they can track a company's performance in its report, look at what expert is forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analyst has changed their mind on Myers Industries after the latest results.
Check out our latest analysis for Myers Industries
Following the latest results, Myers Industries' one analyst are now forecasting revenues of US$915.8m in 2024. This would be a solid 14% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to increase 9.5% to US$1.16. In the lead-up to this report, the analyst had been modelling revenues of US$941.7m and earnings per share (EPS) of US$1.37 in 2024. The analyst seem less optimistic after the recent results, reducing their revenue forecasts and making a substantial drop in earnings per share numbers.
The average price target climbed 36% to US$30.00despite the reduced earnings forecasts, suggesting that this earnings impact could be a positive for the stock, once it passes.
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. It's clear from the latest estimates that Myers Industries' rate of growth is expected to accelerate meaningfully, with the forecast 19% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 13% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 2.9% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analyst also expect Myers Industries to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that the analyst downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. There was also a nice increase in the price target, with the analyst clearly feeling that the intrinsic value of the business is improving.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have analyst estimates for Myers Industries going out as far as 2026, and you can see them free on our platform here.
Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Myers Industries that you should be aware of.
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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.
