US$51.91 - That's What Analysts Think Silgan Holdings Inc. (NYSE:SLGN) Is Worth After These Results

Investors in Silgan Holdings Inc. (NYSE:SLGN) had a good week, as its shares rose 3.3% to close at US$45.25 following the release of its full-year results. The result was positive overall - although revenues of US$6.0b were in line with what the analysts predicted, Silgan Holdings surprised by delivering a statutory profit of US$2.98 per share, modestly greater than 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for Silgan Holdings

Taking into account the latest results, Silgan Holdings' eleven analysts currently expect revenues in 2024 to be US$6.09b, approximately in line with the last 12 months. Statutory earnings per share are predicted to increase 6.0% to US$3.25. Before this earnings report, the analysts had been forecasting revenues of US$6.11b and earnings per share (EPS) of US$3.29 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

The consensus price target rose 6.1% to US$51.91despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of Silgan Holdings' earnings by assigning a price premium. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Silgan Holdings, with the most bullish analyst valuing it at US$62.00 and the most bearish at US$42.00 per share. 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.

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. We would highlight that Silgan Holdings' revenue growth is expected to slow, with the forecast 1.7% annualised growth rate until the end of 2024 being well below the historical 8.7% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 2.9% per year. Factoring in the forecast slowdown in growth, it seems obvious that Silgan Holdings is also expected to grow slower than other industry participants.

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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse 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 estimates - from multiple Silgan Holdings analysts - going out to 2026, and you can see them free on our platform here.

Before you take the next step you should know about the 2 warning signs for Silgan Holdings (1 is significant!) that we have uncovered.

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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.