Results: UFP Technologies, Inc. Exceeded Expectations And The Consensus Has Updated Its Estimates

UFP Technologies, Inc. (NASDAQ:UFPT) defied analyst predictions to release its quarterly results, which were ahead of market expectations. It was a solid earnings report, with revenues and statutory earnings per share (EPS) both coming in strong. Revenues were 11% higher than the analyst had forecast, at US$71m, while EPS were US$0.64 beating analyst models by 42%. The analyst 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 analyst has changed their earnings models, following these results.

Check out our latest analysis for UFP Technologies

Taking into account the latest results, the current consensus from UFP Technologies' lone analyst is for revenues of US$308.2m in 2022, which would reflect a major 35% increase on its sales over the past 12 months. Statutory earnings per share are predicted to leap 62% to US$3.56. Before this earnings report, the analyst had been forecasting revenues of US$278.5m and earnings per share (EPS) of US$3.08 in 2022. So we can see there's been a pretty clear increase in sentiment following the latest results, with both revenues and earnings per share receiving a decent lift in the latest estimates.

With these upgrades, we're not surprised to see that the analyst has lifted their price target 11% to US$100.00per share.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the UFP Technologies' past performance and to peers in the same industry. It's clear from the latest estimates that UFP Technologies' rate of growth is expected to accelerate meaningfully, with the forecast 49% annualised revenue growth to the end of 2022 noticeably faster than its historical growth of 6.4% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 7.8% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analyst also expect UFP Technologies to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around UFP Technologies' earnings potential next year. Happily, they also upgraded their revenue estimates, and are forecasting revenues to grow faster than the wider industry. There was also a nice increase in the price target, with the analyst clearly feeling that the intrinsic value of the business is improving.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for UFP Technologies going out as far as 2023, and you can see them free on our platform here.

We also provide an overview of the UFP Technologies Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, 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.