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The Shyft Group, Inc. (NASDAQ:SHYF) just released its quarterly report and things are looking bullish. Revenues and losses per share were both better than expected, with revenues of US$207m leading estimates by 8.9%. Statutory losses were smaller than the analystsexpected, coming in at US$0.11 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Check out our latest analysis for Shyft Group
Taking into account the latest results, the current consensus from Shyft Group's five analysts is for revenues of US$1.06b in 2022, which would reflect a satisfactory 5.9% increase on its sales over the past 12 months. Statutory earnings per share are expected to crater 40% to US$0.91 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$1.11b and earnings per share (EPS) of US$1.56 in 2022. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a pretty serious reduction to earnings per share estimates.
It'll come as no surprise then, to learn that the analysts have cut their price target 8.4% to US$45.80. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Shyft Group, with the most bullish analyst valuing it at US$59.00 and the most bearish at US$37.00 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of Shyft Group'shistorical trends, as the 8.0% annualised revenue growth to the end of 2022 is roughly in line with the 8.8% annual revenue growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 6.3% annually. So although Shyft Group is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.