Public Joint Stock Company Magnitogorsk Iron & Steel Works (MCX:MAGN) last week reported its latest annual results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Statutory earnings per share fell badly short of expectations, coming in at US$0.077, some 21% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at US$7.6b. Following the result, analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether analysts have changed their mind on Magnitogorsk Iron & Steel Works after the latest results.

See our latest analysis for Magnitogorsk Iron & Steel Works

Following the recent earnings report, the consensus fromnine analysts covering Magnitogorsk Iron & Steel Works expects revenues of US$7.27b in 2020, implying a measurable 3.9% decline in sales compared to the last 12 months. Statutory earnings per share are expected to leap 28% to US$0.097. Before this earnings report, analysts had been forecasting revenues of US$7.23b and earnings per share (EPS) of US$0.096 in 2020. 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.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$0.72. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Magnitogorsk Iron & Steel Works, with the most bullish analyst valuing it at US$0.94 and the most bearish at US$0.50 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

In addition, we can look to Magnitogorsk Iron & Steel Works's past performance and see whether business is expected to improve, and if the company is expected to perform better than wider market. These estimates imply that sales are expected to slow, with a forecast revenue decline of 3.9% a significant reduction from annual growth of 5.1% over the last five years. Compare this with our data, which suggests that other companies in the same market are, in aggregate, expected to see their revenue grow 1.2% next year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - analysts also expect Magnitogorsk Iron & Steel Works to grow slower than the wider market.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with analysts reconfirming that earnings per share are expected to continue performing in line with their prior expectations. Fortunately, analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - although our data does suggest that Magnitogorsk Iron & Steel Works's revenues are expected to perform worse than the wider market. 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Magnitogorsk Iron & Steel Works. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Magnitogorsk Iron & Steel Works going out to 2024, and you can see them free on our platform here..

We also provide an overview of the Magnitogorsk Iron & Steel Works Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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