Earnings Update: Here's Why Analysts Just Lifted Their MYR Group Inc. (NASDAQ:MYRG) Price Target To US$171

MYR Group Inc. (NASDAQ:MYRG) came out with its yearly results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Results overall were respectable, with statutory earnings of US$5.40 per share roughly in line with what the analysts had forecast. Revenues of US$3.6b came in 2.8% ahead of analyst predictions. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for MYR Group

Taking into account the latest results, the most recent consensus for MYR Group from five analysts is for revenues of US$3.92b in 2024. If met, it would imply a modest 7.5% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to climb 17% to US$6.35. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$3.82b and earnings per share (EPS) of US$6.39 in 2024. There doesn't appear to have been a major change in sentiment following the results, other than the slight bump in revenue estimates.

The consensus price target increased 5.2% to US$171, with an improved revenue forecast carrying the promise of a more valuable business, in time. 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. There are some variant perceptions on MYR Group, with the most bullish analyst valuing it at US$185 and the most bearish at US$164 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

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 would highlight that MYR Group's revenue growth is expected to slow, with the forecast 7.5% annualised growth rate until the end of 2024 being well below the historical 15% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 7.7% annually. So it's pretty clear that, while MYR Group's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. They also upgraded their revenue forecasts, although the latest estimates suggest that MYR Group will grow in line with the overall industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for MYR Group going out to 2025, and you can see them free on our platform here..

You can also view our analysis of MYR Group's balance sheet, and whether we think MYR Group is carrying too much debt, for free on our platform here.

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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.