Quaker Chemical Corporation (NYSE:KWR) shareholders are probably feeling a little disappointed, since its shares fell 2.5% to US$186 in the week after its latest first-quarter results.       Quaker Chemical missed revenue estimates by 5.0%, coming in atUS$470m, although statutory earnings per share (EPS) of US$1.96 beat expectations, coming in 4.5% ahead of analyst estimates.     This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business.  With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

NYSE:KWR Earnings and Revenue Growth May 6th 2024

Taking into account the latest results, the consensus forecast from Quaker Chemical's six analysts is for revenues of US$1.97b in 2024. This reflects a satisfactory 2.3% improvement in revenue compared to the last 12 months.       Statutory earnings per share are predicted to soar 31% to US$8.56.        Yet prior to the latest earnings, the analysts had been anticipated revenues of US$2.00b and earnings per share (EPS) of US$8.48 in 2024.        The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.    

It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$234.        There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business.   The most optimistic Quaker Chemical analyst has a price target of US$280 per share, while the most pessimistic values it at US$222.   The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.    

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that Quaker Chemical's revenue growth is expected to slow, with the forecast 3.1% annualised growth rate until the end of 2024 being well below the historical 15% p.a. growth over the last five years.    Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 4.8% annually.  So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Quaker Chemical.    

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates.        On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry.       The consensus price target held steady at US$234, with the latest estimates not enough to have an impact on their price targets.  

With that said, the long-term trajectory of the company's earnings is a lot more important than next year.   We have forecasts for Quaker Chemical going out to 2026, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 1 warning sign for Quaker Chemical that you need to be mindful 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.