Myers Industries, Inc. (NYSE:MYE) just released its latest quarterly results and things are looking bullish. The company beat both earnings and revenue forecasts, with revenue of US$187m, some 2.5% above estimates, and statutory earnings per share (EPS) coming in at US$0.30, 25% ahead of expectations. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
After the latest results, the two analysts covering Myers Industries are now predicting revenues of US$746.2m in 2021. If met, this would reflect a solid 18% improvement in sales compared to the last 12 months. Per-share earnings are expected to surge 26% to US$1.05. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$700.0m and earnings per share (EPS) of US$1.00 in 2021. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.
It will come as no surprise to learn that the analysts have increased their price target for Myers Industries 5.6% to US$25.00on the back of these upgrades.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Myers Industries' past performance and to peers in the same industry. For example, we noticed that Myers Industries' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 40% growth to the end of 2021 on an annualised basis. That is well above its historical decline of 0.4% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 3.9% per year. So it looks like Myers Industries is expected to grow faster than its competitors, at least for a while.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Myers Industries' earnings potential next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
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. We have analyst estimates for Myers Industries going out as far as 2023, and you can see them free on our platform here.
You should always think about risks though. Case in point, we've spotted 1 warning sign for Myers Industries you should be aware of.
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