A week ago, Albany International Corp. (NYSE:AIN) came out with a strong set of annual numbers that could potentially lead to a re-rate of the stock. The company beat expectations with revenues of US$1.1b arriving 2.3% ahead of forecasts. Statutory earnings per share (EPS) were US$3.55, 8.4% ahead of estimates. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Albany International after the latest results.
Taking into account the latest results, the most recent consensus for Albany International from four analysts is for revenues of US$1.30b in 2024. If met, it would imply a notable 13% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to step up 11% to US$3.95. Before this earnings report, the analysts had been forecasting revenues of US$1.29b and earnings per share (EPS) of US$3.99 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$111. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Albany International, with the most bullish analyst valuing it at US$121 and the most bearish at US$98.00 per share. This is a very narrow spread of estimates, implying either that Albany International is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.
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. The analysts are definitely expecting Albany International's growth to accelerate, with the forecast 13% annualised growth to the end of 2024 ranking favourably alongside historical growth of 1.4% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 3.3% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Albany International is expected to grow much faster than its industry.
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. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
With that in mind, we wouldn't be too quick to come to a conclusion on Albany International. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Albany International going out to 2026, and you can see them free on our platform here..
You can also see whether Albany International is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.
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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.