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Investors in Ranpak Holdings Corp. (NYSE:PACK) had a good week, as its shares rose 5.1% to close at US$7.76 following the release of its second-quarter results. Although revenues of US$86m were in line with analyst expectations, Ranpak Holdings surprised on the earnings front, with an unexpected (statutory) profit of US$0.07 per share a nice improvement on the losses that the analystsforecast. 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've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Check out our latest analysis for Ranpak Holdings
Taking into account the latest results, the current consensus from Ranpak Holdings' three analysts is for revenues of US$364.6m in 2024. This would reflect a credible 5.7% increase on its revenue over the past 12 months. Losses are forecast to balloon 42% to US$0.26 per share. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$365.4m and losses of US$0.27 per share in 2024.
The consensus price target rose 14% to US$8.58, with the analysts increasing their valuations as the business executes in line with forecasts. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Ranpak Holdings analyst has a price target of US$10.00 per share, while the most pessimistic values it at US$5.75. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Ranpak Holdings shareholders.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting Ranpak Holdings' growth to accelerate, with the forecast 12% annualised growth to the end of 2024 ranking favourably alongside historical growth of 5.1% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.3% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Ranpak Holdings is expected to grow much faster than its industry.