Analysts have significantly downgraded their revenue and earnings per share (EPS) forecasts for both GrafTech International (NYSE:EAF) Ltd. and Myers Industries (NYSE:MYE), Inc. for the year 2024. This comes amid growing concerns about the future of both companies, reflected in the revised predictions.
The revised forecasts for GrafTech suggest revenues of approximately $716m and an expected loss of $0.012 per share, a stark contrast from earlier projections of $862m in revenues and an EPS of $0.30 for 2024. The consensus price target has also been reduced by 13% to $3.50, reflecting concerns about the company's weakening financial outlook.
Despite a predicted 1.6% annualized revenue decline until 2024, this is an improvement over GrafTech's historical trend of a 13% annual contraction over the past five years. Yet, this growth rate is slower than the wider market's expected growth. The bearish outlook is influenced by GrafTech's declining profit margins, potential changes in management's buying or selling activities, and one other identified risk.
On the other hand, analysts have drastically revised their outlook for Myers Industries, forecasting significant declines in both revenue and EPS for 2024. They now estimate revenues at $810m and EPS at $1.14, marking a drop of 6.4% and 17% respectively from prior projections, which had predicted revenues of $903m and an EPS of $1.79.
This revised forecast contrasts sharply with Myers Industries' historical growth of 13% over the past five years and indicates an annualized revenue decline of 5.2%. While other companies in the same industry are expected to increase their revenue by 2.4% annually, Myers Industries' performance is anticipated to be considerably weaker than the wider market growth.
The activities of the company's management, such as buying or selling, could indicate a potential inflection point for the company, which might be of interest to investors. Despite slower revenue growth than the wider market, Myers Industries' future is yet to unfold.
In both cases, analysts' forecasts are based on historical data and provide a long-term focused analysis. Investors are advised to keep an eye on growing companies where insiders are buying.
InvestingPro Insights
Diving into the data from InvestingPro, GrafTech International Ltd. (EAF) has indeed taken a significant hit over the last six months (InvestingPro Tip 12). The company's stock is trading near its 52-week low (InvestingPro Tip 10), which suggests it's in oversold territory (InvestingPro Tip 1). This could indicate a potential turning point for the company. The real-time InvestingPro Data shows a market cap of 657.43M USD and a P/E ratio of 52.65 as of Q3 2023. Moreover, the revenue for the last twelve months as of Q3 2023 was 730.87M USD, showing a decline of 47.68%.
Meanwhile, Myers Industries, Inc. (MYE) has shown a significant return over the last week (InvestingPro Tip 4), despite the downward revisions in their earnings. The company has a notable record of consistently increasing earnings per share (InvestingPro Tip 1), which might be of interest to investors. The InvestingPro Data reveals a market cap of 624.41M USD and a P/E ratio of 12.71 as of Q2 2023. The company's revenue for the last twelve months as of Q2 2023 was 865.1M USD, with a modest growth of 0.79%.
These insights, along with hundreds of others, are available to users of the InvestingPro platform to help them make informed investment decisions.
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