The Manitowoc Company, Inc. Just Missed EPS By 92%: Here's What Analysts Think Will Happen Next

The Manitowoc Company, Inc. (NYSE:MTW) just released its latest quarterly report and things are not looking great. Results showed a clear earnings miss, with US$562m revenue coming in 6.0% lower than what the analystsexpected. Statutory earnings per share (EPS) of US$0.04 missed the mark badly, arriving some 92% below what was expected. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for Manitowoc Company

Following last week's earnings report, Manitowoc Company's five analysts are forecasting 2024 revenues to be US$2.21b, approximately in line with the last 12 months. Per-share earnings are expected to bounce 382% to US$1.18. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$2.28b and earnings per share (EPS) of US$1.20 in 2024. The consensus seems maybe a little more pessimistic, trimming their revenue forecasts after the latest results even though there was no change to its EPS estimates.

The average price target was steady at US$14.17even though revenue estimates declined; likely suggesting the analysts place a higher value on earnings. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Manitowoc Company analyst has a price target of US$20.00 per share, while the most pessimistic values it at US$12.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Manitowoc Company's past performance and to peers in the same industry. 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 3.1% growth on an annualised basis. This is compared to a historical growth rate of 6.6% over the past five years. Compare this to the 172 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 3.2% per year. 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 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 downgraded their revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider industry. With that said, earnings are more important to the long-term value of the business. The consensus price target held steady at US$14.17, 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. At Simply Wall St, we have a full range of analyst estimates for Manitowoc Company going out to 2026, and you can see them free on our platform here..

Plus, you should also learn about the 2 warning signs we've spotted with Manitowoc Company (including 1 which is a bit concerning) .

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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.