Earnings Beat: Albany International Corp. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

Albany International Corp. (NYSE:AIN) just released its latest annual results and things are looking bullish. Results were good overall, with revenues beating analyst predictions by 2.3% to hit US$1.1b. Statutory earnings per share (EPS) came in at US$3.55, some 8.4% above whatthe analysts had expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for Albany International

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. Per-share earnings are expected to swell 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. 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.

The analysts reconfirmed their price target of US$111, showing that the business is executing well and in line with expectations. 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. Currently, the most bullish analyst values Albany International at US$121 per share, while the most bearish prices it at US$98.00. 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. It's clear from the latest estimates that Albany International's rate of growth is expected to accelerate meaningfully, with the forecast 13% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 1.4% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 3.3% annually. 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 important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at US$111, with the latest estimates not enough to have an impact on their price targets.

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..

It might also be worth considering whether Albany International's debt load is appropriate, using our debt analysis tools on the Simply Wall St 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.