Yahoo Finance Ranpak Holdings Corp. (NYSE:PACK) First-Quarter Results: Here's What Analysts Are Forecasting For This Year
Last week, you might have seen that Ranpak Holdings Corp. (NYSE:PACK) released its quarterly result to the market. The early response was not positive, with shares down 9.4% to US$6.73 in the past week. It was a pretty bad result overall; while revenues were in line with expectations at US$85m, statutory losses exploded to US$0.10 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Ranpak Holdings after the latest results.
See our latest analysis for Ranpak Holdings
Taking into account the latest results, the current consensus from Ranpak Holdings' three analysts is for revenues of US$364.0m in 2024. This would reflect a satisfactory 6.9% increase on its revenue over the past 12 months. Losses are forecast to narrow 9.0% to US$0.25 per share. Before this latest report, the consensus had been expecting revenues of US$368.1m and US$0.26 per share in losses. So there seems to have been a moderate uplift in analyst sentiment with the latest consensus release, given the upgrade to loss per share forecasts for this year.
There's been no major changes to the consensus price target of US$7.83, suggesting that reduced loss estimates are not enough to have a long-term positive impact on the stock's valuation. 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. Currently, the most bullish analyst values Ranpak Holdings at US$10.00 per share, while the most bearish prices it at US$5.50. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Ranpak Holdings shareholders.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analysts are definitely expecting Ranpak Holdings' growth to accelerate, with the forecast 9.4% annualised growth to the end of 2024 ranking favourably alongside historical growth of 5.6% per annum 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 analysts also expect Ranpak Holdings to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at US$7.83, with the latest estimates not enough to have an impact on their price targets.
With that in mind, we wouldn't be too quick to come to a conclusion on Ranpak Holdings. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Ranpak Holdings analysts - going out to 2026, and you can see them free on our platform here.
You should always think about risks though. Case in point, we've spotted 2 warning signs for Ranpak Holdings you should be aware of, and 1 of them makes us a bit uncomfortable.
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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.
