Steel & Tube Holdings Limited Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Steel & Tube Holdings Limited (NZSE:STU) shareholders are probably feeling a little disappointed, since its shares fell 2.9% to NZ$1.02 in the week after its latest annual results. Statutory earnings per share fell badly short of expectations, coming in at NZ$0.016, some 43% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at NZ$479m. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Steel & Tube Holdings after the latest results.

Check out our latest analysis for Steel & Tube Holdings

Following last week's earnings report, Steel & Tube Holdings' two analysts are forecasting 2025 revenues to be NZ$477.2m, approximately in line with the last 12 months. Per-share earnings are expected to bounce 81% to NZ$0.029. Yet prior to the latest earnings, the analysts had been anticipated revenues of NZ$498.2m and earnings per share (EPS) of NZ$0.066 in 2025. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a pretty serious reduction to earnings per share numbers.

What's most unexpected is that the consensus price target rose 6.0% to NZ$1.16, strongly implying the downgrade to forecasts is not expected to be more than a temporary blip.

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. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 0.4% by the end of 2025. This indicates a significant reduction from annual growth of 5.1% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 1.4% per year. It's pretty clear that Steel & Tube Holdings' revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Steel & Tube Holdings. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

Plus, you should also learn about the 2 warning signs we've spotted with Steel & Tube Holdings .

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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.