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It's been a good week for Ranpak Holdings Corp. (NYSE:PACK) shareholders, because the company has just released its latest quarterly results, and the shares gained 5.3% to US$6.11. Revenues were in line with expectations, at US$92m, while statutory losses ballooned to US$0.10 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.
See our latest analysis for Ranpak Holdings
Taking into account the latest results, the most recent consensus for Ranpak Holdings from two analysts is for revenues of US$399.2m in 2025. If met, it would imply a solid 13% increase on its revenue over the past 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 79% to US$0.05. Before this latest report, the consensus had been expecting revenues of US$398.6m and US$0.01 per share in losses. While next year's revenue estimates held steady, there was also a considerable increase to loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.
Despite expectations of heavier losses next year,the analysts have lifted their price target 39% to US$11.00, perhaps implying these losses are not expected to be recurring over the long term.
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 Ranpak Holdings' growth to accelerate, with the forecast 10% annualised growth to the end of 2025 ranking favourably alongside historical growth of 4.5% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 6.4% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Ranpak Holdings is expected to grow much faster than its industry.
The Bottom Line
The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at Ranpak Holdings. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.