Hyster-Yale, Inc. (NYSE:HY) defied analyst predictions to release its quarterly results, which were ahead of market expectations. The company beat forecasts, with revenue of US$1.2b, some 8.1% above estimates, and statutory earnings per share (EPS) coming in at US$3.58, 57% ahead of expectations. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Following last week's earnings report, Hyster-Yale's two analysts are forecasting 2024 revenues to be US$4.34b, approximately in line with the last 12 months. Statutory per-share earnings are expected to be US$9.91, roughly flat on the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$4.26b and earnings per share (EPS) of US$8.30 in 2024. Although the revenue estimates have not really changed, we can see there's been a decent improvement in earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.
The consensus price target fell 5.1% to US$84.00, suggesting the increase in earnings forecasts was not enough to offset other the analysts concerns.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Hyster-Yale's past performance and to peers in the same industry. We would highlight that Hyster-Yale's revenue growth is expected to slow, with the forecast 4.0% annualised growth rate until the end of 2024 being well below the historical 6.9% p.a. growth over the last five years. Compare this to the 172 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 3.2% per year. So it's pretty clear that, while Hyster-Yale's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Hyster-Yale 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. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Hyster-Yale's future valuation.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Hyster-Yale going out as far as 2025, and you can see them free on our platform here.
You still need to take note of risks, for example - Hyster-Yale has 2 warning signs (and 1 which makes us a bit uncomfortable) we think 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.
