A week ago, Hyster-Yale Materials Handling, Inc. (NYSE:HY) came out with a strong set of quarterly numbers that could potentially lead to a re-rate of the stock. The company beat forecasts, with revenue of US$1.1b, some 2.4% above estimates, and statutory earnings per share (EPS) coming in at US$2.93, 37% ahead of expectations. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Taking into account the latest results, Hyster-Yale Materials Handling's dual analysts currently expect revenues in 2024 to be US$4.23b, approximately in line with the last 12 months. Statutory earnings per share are forecast to dip 3.2% to US$8.34 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$4.20b and earnings per share (EPS) of US$7.06 in 2024. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the decent improvement in earnings per share expectations following these results.
There's been no major changes to the consensus price target of US$88.50, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that Hyster-Yale Materials Handling's revenue growth is expected to slow, with the forecast 1.6% annualised growth rate until the end of 2024 being well below the historical 5.8% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 3.6% per year. Factoring in the forecast slowdown in growth, it seems obvious that Hyster-Yale Materials Handling is also expected to grow slower than other industry participants.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Hyster-Yale Materials Handling's earnings potential next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Hyster-Yale Materials Handling's revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$88.50, with the latest estimates not enough to have an impact on their price targets.
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 Hyster-Yale Materials Handling going out as far as 2025, and you can see them free on our platform here.
Plus, you should also learn about the 3 warning signs we've spotted with Hyster-Yale Materials Handling (including 1 which shouldn't be ignored) .
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