Artesian Resources Corporation (NASDAQ:ARTN.A) just released its third-quarter report and things are looking bullish. Results were good overall, with revenues beating analyst predictions by 2.2% to hit US$27m. Statutory earnings per share (EPS) came in at US$0.49, some 2.1% above whatthe analyst had expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analyst is forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analyst latest (statutory) post-earnings forecasts for next year.
See our latest analysis for Artesian Resources
After the latest results, the one analyst covering Artesian Resources are now predicting revenues of US$107.0m in 2024. If met, this would reflect a modest 7.6% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to soar 32% to US$2.00. Yet prior to the latest earnings, the analyst had been anticipated revenues of US$106.0m and earnings per share (EPS) of US$2.15 in 2024. The analyst seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.
The average price target fell 7.1% to US$52.00, with reduced earnings forecasts clearly tied to a lower valuation estimate.
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. It's clear from the latest estimates that Artesian Resources' rate of growth is expected to accelerate meaningfully, with the forecast 6.0% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 4.8% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.8% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Artesian Resources is expected to grow at about the same rate as 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. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target fell measurably, with the analyst seemingly not reassured by the latest results, leading to a lower estimate of Artesian Resources' future valuation.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Artesian Resources 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 Artesian Resources (including 1 which 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.
