This Analyst Just Wrote A Brand New Outlook For Myers Industries, Inc.'s (NYSE:MYE) Business

Celebrations may be in order for Myers Industries, Inc. (NYSE:MYE) shareholders, with the covering analyst delivering a significant upgrade to their statutory estimates for the company. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with the analyst modelling a real improvement in business performance. Investors have been pretty optimistic on Myers Industries too, with the stock up 10% to US$21.21 over the past week. We'll be curious to see if these new estimates convince the market to lift the stock price higher still.

After the upgrade, the solo analyst covering Myers Industries is now predicting revenues of US$949m in 2024. If met, this would reflect a meaningful 17% improvement in sales compared to the last 12 months. Statutory earnings per share are expected to be US$1.35, roughly flat on the last 12 months. Previously, the analyst had been modelling revenues of US$771m and earnings per share (EPS) of US$1.20 in 2024. So we can see there's been a pretty clear increase in analyst sentiment in recent times, with both revenues and earnings per share receiving a decent lift in the latest estimates.

See our latest analysis for Myers Industries

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. The analyst is definitely expecting Myers Industries' growth to accelerate, with the forecast 17% annualised growth to the end of 2024 ranking favourably alongside historical growth of 13% 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 2.6% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analyst also expect Myers Industries to grow faster than the wider industry.

The Bottom Line

The most important thing to take away from this upgrade is that the analyst upgraded their earnings per share estimates for this year, expecting improving business conditions. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. The clear improvement in sentiment should be enough to get most shareholders feeling more optimistic about Myers Industries' future.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for Myers Industries going out as far as 2025, and you can see them free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.

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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.