Investors in UFP Technologies, Inc. (NASDAQ:UFPT) had a good week, as its shares rose 9.0% to close at US$211 following the release of its annual results. UFP Technologies reported US$400m in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$5.83 beat expectations, being 2.7% higher than what the analysts expected. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on UFP Technologies after the latest results.
Taking into account the latest results, the current consensus from UFP Technologies' three analysts is for revenues of US$432.1m in 2024. This would reflect a reasonable 8.0% increase on its revenue over the past 12 months. Statutory per-share earnings are expected to be US$5.77, roughly flat on the last 12 months. Before this earnings report, the analysts had been forecasting revenues of US$440.8m and earnings per share (EPS) of US$6.21 in 2024. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.
Despite cutting their earnings forecasts,the analysts have lifted their price target 23% to US$231, suggesting that these impacts are not expected to weigh on the stock's value in the long term.
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 UFP Technologies' revenue growth is expected to slow, with the forecast 8.0% annualised growth rate until the end of 2024 being well below the historical 18% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 7.8% annually. Factoring in the forecast slowdown in growth, it looks like UFP Technologies is forecast to grow at about the same rate as the wider industry.
The Bottom Line
The most important thing to take away is that the analysts 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. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for UFP Technologies going out to 2026, and you can see them free on our platform here..
Don't forget that there may still be risks. For instance, we've identified 1 warning sign for UFP Technologies that you should be aware 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.