In This Article:
As you might know, Montauk Renewables, Inc. (NASDAQ:MNTK) last week released its latest full-year, and things did not turn out so great for shareholders. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at US$206m, statutory earnings missed forecasts by 14%, coming in at just US$0.25 per share. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
View our latest analysis for Montauk Renewables
Taking into account the latest results, the current consensus, from the twin analysts covering Montauk Renewables, is for revenues of US$177.3m in 2023, which would reflect a definite 14% reduction in Montauk Renewables' sales over the past 12 months. Statutory earnings per share are expected to dive 60% to US$0.10 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$234.7m and earnings per share (EPS) of US$0.41 in 2023. It looks like sentiment has declined substantially in the aftermath of these results, with a large cut to revenue estimates and a pretty serious reduction to earnings per share numbers as well.
The consensus price target fell 22% to US$8.33, with the weaker earnings outlook clearly leading valuation estimates.
Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that sales are expected to reverse, with a forecast 14% annualised revenue decline to the end of 2023. That is a notable change from historical growth of 29% over the last three years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 7.9% per year. It's pretty clear that Montauk Renewables' revenues are expected to perform substantially worse than the wider industry.
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the negative side, they also downgraded their revenue estimates, and forecasts imply revenues will perform worse than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.