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It's been a good week for Unitil Corporation (NYSE:UTL) shareholders, because the company has just released its latest full-year results, and the shares gained 3.7% to US$42.32. Results look mixed - while revenue fell marginally short of analyst estimates at US$419m, statutory earnings beat expectations 4.4%, with Unitil reporting profits of US$2.15 per share. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Unitil after the latest results.
See our latest analysis for Unitil
After the latest results, the two analysts covering Unitil are now predicting revenues of US$457.9m in 2021. If met, this would reflect a decent 9.4% improvement in sales compared to the last 12 months. Statutory earnings per share are predicted to swell 11% to US$2.39. In the lead-up to this report, the analysts had been modelling revenues of US$462.7m and earnings per share (EPS) of US$2.40 in 2021. 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.
There were no changes to revenue or earnings estimates or the price target of US$51.33, suggesting that the company has met expectations in its recent result.
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. The analysts are definitely expecting Unitil's growth to accelerate, with the forecast 9.4% growth ranking favourably alongside historical growth of 2.4% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 1.8% next year. Factoring in the forecast acceleration in revenue, it's pretty clear that Unitil 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. Fortunately, they also reconfirmed their revenue numbers, suggesting sales are tracking in line with expectations - and our data suggests that revenues are 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.