Yahoo Finance The Andersons, Inc. Just Missed EPS By 29%: Here's What Analysts Think Will Happen Next
The analysts might have been a bit too bullish on The Andersons, Inc. (NASDAQ:ANDE), given that the company fell short of expectations when it released its quarterly results last week. Andersons delivered a grave earnings miss, with both revenues (US$2.7b) and statutory earnings per share (US$0.16) falling badly short of analyst expectations. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
See our latest analysis for Andersons
After the latest results, the consensus from Andersons' two analysts is for revenues of US$12.3b in 2024, which would reflect a considerable 9.2% decline in revenue compared to the last year of performance. Statutory earnings per share are forecast to plunge 26% to US$2.66 in the same period. In the lead-up to this report, the analysts had been modelling revenues of US$13.5b and earnings per share (EPS) of US$2.97 in 2024. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a real cut to earnings per share estimates.
The average price target climbed 9.5% to US$67.50despite the reduced earnings forecasts, suggesting that this earnings impact could be a positive for the stock, once it passes.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that revenue is expected to reverse, with a forecast 12% annualised decline to the end of 2024. That is a notable change from historical growth of 22% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 4.6% per year. It's pretty clear that Andersons' revenues are expected to perform substantially worse than the wider industry.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Andersons. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
With that in mind, we wouldn't be too quick to come to a conclusion on Andersons. Long-term earnings power is much more important than next year's profits. We have analyst estimates for Andersons going out as far as 2025, and you can see them free on our platform here.
Even so, be aware that Andersons is showing 1 warning sign in our investment analysis , you should know about...
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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.
