Last week saw the newest annual earnings release from Manitex International, Inc. (NASDAQ:MNTX), an important milestone in the company’s journey to build a stronger business. Revenues of US$225m were in line with expectations, although statutory losses per share were US$0.43, some 13% smaller than was expected. Earnings are an important time for investors, as they can track a company’s performance, look at what top analysts are forecasting for next year, and see if there’s been a change in sentiment towards the company. With this in mind, we’ve gathered the latest statutory forecasts to see what analysts are expecting for next year.
See our latest analysis for Manitex International
Taking into account the latest results, the twin analysts covering Manitex International provided consensus estimates of US$212.9m revenue in 2020, which would reflect a small 5.3% decline on its sales over the past 12 months. Manitex International is also expected to turn profitable, with statutory earnings of US$0.20 per share. Before this earnings report, analysts had been forecasting revenues of US$231.3m and earnings per share (EPS) of US$0.28 in 2020. Analysts seem less optimistic after the recent results, reducing their sales forecasts and making a large cut to earnings per share forecasts.
Analysts made no major changes to their price target of US$6.75, suggesting the downgrades are not expected to have a long-term impact on Manitex International’s valuation.
Another way to assess these estimates is by comparing them to past performance, and seeing whether analysts are more or less bullish relative to other companies in the market. These estimates imply that sales are expected to slow, with a forecast revenue decline of 5.3% a significant reduction from annual growth of 1.9% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same market are forecast to see their revenue grow 1.8% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining – analysts also expect Manitex International to grow slower than the wider market.
The Bottom Line
The most important thing to take away is that 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 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.
Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At least one analyst has provided forecasts out to 2021, which can be seen for free on our platform here.
You can also see whether Manitex International is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.
If you spot an error that warrants correction, please contact the editor at [email protected] This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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