UFP Technologies, Inc. Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

A week ago, UFP Technologies, Inc. (NASDAQ:UFPT) came out with a strong set of quarterly numbers that could potentially lead to a re-rate of the stock. UFP Technologies beat earnings, with revenues hitting US$110m, ahead of expectations, and statutory earnings per share outperforming analyst reckonings by a solid 15%. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for UFP Technologies

Following the latest results, UFP Technologies' three analysts are now forecasting revenues of US$479.3m in 2024. This would be a notable 15% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to accumulate 8.6% to US$7.02. In the lead-up to this report, the analysts had been modelling revenues of US$473.3m and earnings per share (EPS) of US$6.74 in 2024. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 7.7% to US$336. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic UFP Technologies analyst has a price target of US$392 per share, while the most pessimistic values it at US$280. 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.

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. The analysts are definitely expecting UFP Technologies' growth to accelerate, with the forecast 32% annualised growth to the end of 2024 ranking favourably alongside historical growth of 20% per annum 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 8.2% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that UFP Technologies is expected to grow much faster than its industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards UFP Technologies following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster 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. We have forecasts for UFP Technologies going out to 2025, and you can see them free on our platform here.

It might also be worth considering whether UFP Technologies' debt load is appropriate, using our debt analysis tools on the Simply Wall St 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com