US$231 - That's What Analysts Think UFP Technologies, Inc. (NASDAQ:UFPT) Is Worth After These Results

Investors in UFP Technologies, Inc. (NASDAQ:UFPT) had a good week, as its shares rose 9.0% to close at US$211 following the release of its annual results. UFP Technologies reported US$400m in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$5.83 beat expectations, being 2.7% higher than what the analysts expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for UFP Technologies

Taking into account the latest results, the current consensus from UFP Technologies' three analysts is for revenues of US$432.1m in 2024. This would reflect an okay 8.0% increase on its revenue over the past 12 months. Statutory per share are forecast to be US$5.77, approximately in line with the last 12 months. Before this earnings report, the analysts had been forecasting revenues of US$440.8m and earnings per share (EPS) of US$6.21 in 2024. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.

Althoughthe analysts have revised their earnings forecasts for next year, they've also lifted the consensus price target 23% to US$231, suggesting the revised estimates are not indicative of a weaker long-term future for the business.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's pretty clear that there is an expectation that UFP Technologies' revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 8.0% growth on an annualised basis. This is compared to a historical growth rate of 18% over the past five years. Compare this to the 245 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 7.8% per year. So it's pretty clear that, while UFP Technologies' 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 UFP Technologies. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall 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 2026, and you can see them free on our platform here.

You still need to take note of risks, for example - UFP Technologies has 1 warning sign we think you should be aware of.

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

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.