The Manitowoc Company, Inc. Just Missed EPS By 32%: Here's What Analysts Think Will Happen Next

There's been a major selloff in The Manitowoc Company, Inc. (NYSE:MTW) shares in the week since it released its full-year report, with the stock down 22% to US$13.23. It looks like a pretty bad result, all things considered. Although revenues of US$2.2b were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 32% to hit US$1.09 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Manitowoc Company after the latest results.

See our latest analysis for Manitowoc Company

After the latest results, the nine analysts covering Manitowoc Company are now predicting revenues of US$2.30b in 2024. If met, this would reflect a reasonable 3.4% improvement in revenue compared to the last 12 months. Per-share earnings are expected to step up 19% to US$1.33. Before this earnings report, the analysts had been forecasting revenues of US$2.20b and earnings per share (EPS) of US$1.60 in 2024. So it's pretty clear the analysts have mixed opinions on Manitowoc Company after the latest results; even though they upped their revenue numbers, it came at the cost of a real cut to per-share earnings expectations.

The consensus price target was unchanged at US$17.00, suggesting the business is performing roughly in line with expectations, despite some adjustments to profit and revenue forecasts. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Manitowoc Company at US$20.00 per share, while the most bearish prices it at US$15.00. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Manitowoc Company is an easy business to forecast or the the analysts are all using similar assumptions.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Manitowoc Company's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 3.4% growth on an annualised basis. This is compared to a historical growth rate of 4.5% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 3.3% annually. So it's pretty clear that, while Manitowoc Company's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Manitowoc Company. They also upgraded their revenue forecasts, although the latest estimates suggest that Manitowoc Company will grow in line with the overall industry. The consensus price target held steady at US$17.00, with the latest estimates not enough to have an impact on their price targets.

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. We have forecasts for Manitowoc Company going out to 2026, and you can see them free on our platform here.

It is also worth noting that we have found 2 warning signs for Manitowoc Company (1 is concerning!) 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.