NZ$0.82: That's What Analysts Think Steel & Tube Holdings Limited (NZSE:STU) Is Worth After Its Latest Results

Shareholders might have noticed that Steel & Tube Holdings Limited (NZSE:STU) filed its annual result this time last week. The early response was not positive, with shares down 6.9% to NZ$0.67 in the past week. It was a pretty bad result overall; while revenues were in line with expectations at NZ$385m, statutory losses exploded to NZ$0.14 per share. Following the result, the 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Taking into account the latest results, the most recent consensus for Steel & Tube Holdings from twin analysts is for revenues of NZ$477.9m in 2026. If met, it would imply a huge 24% increase on its revenue over the past 12 months. Statutory losses are forecast to balloon 73% to NZ$0.036 per share. In the lead-up to this report, the analysts had been modelling revenues of NZ$489.0m and earnings per share (EPS) of NZ$0.019 in 2026. There looks to have been a significant drop in sentiment regarding Steel & Tube Holdings' prospects after these latest results, with a small dip in revenues and the analysts now forecasting a loss instead of a profit.

See our latest analysis for Steel & Tube Holdings

The average price target fell 13% to NZ$0.82, implicitly signalling that lower earnings per share are a leading indicator for Steel & Tube Holdings' valuation.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. For example, we noticed that Steel & Tube Holdings' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 24% growth to the end of 2026 on an annualised basis. That is well above its historical decline of 0.5% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 5.4% per year. So it looks like Steel & Tube Holdings is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The most important thing to take away is that the analysts are expecting Steel & Tube Holdings to become unprofitable next year. They also downgraded Steel & Tube Holdings' revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Steel & Tube Holdings' future valuation.

With that in mind, we wouldn't be too quick to come to a conclusion on Steel & Tube Holdings. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2028, which can be seen for free on our platform here.

It is also worth noting that we have found 1 warning sign for Steel & Tube Holdings that you need to take into consideration.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.