Earnings Update: SunCoke Energy, Inc. Beat Earnings And Now Analysts Have New Forecasts For This Year

SunCoke Energy, Inc. (NYSE:SXC) investors will be delighted, with the company turning in some strong numbers with its latest results. The company beat expectations with revenues of US$488m arriving 6.7% ahead of forecasts. Statutory earnings per share (EPS) were US$0.23, 7.0% ahead of estimates. The analysts 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. 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 SunCoke Energy

After the latest results, the consensus from SunCoke Energy's dual analysts is for revenues of US$1.88b in 2024, which would reflect a definite 9.1% decline in revenue compared to the last year of performance. Per-share earnings are expected to step up 15% to US$0.84. Before this earnings report, the analysts had been forecasting revenues of US$1.73b and earnings per share (EPS) of US$0.85 in 2024. There doesn't appear to have been a major change in sentiment following the results, other than the modest lift to revenue estimates.

It may not be a surprise to see thatthe analysts have reconfirmed their price target of US$11.50, implying that the uplift in revenue is not expected to greatly contribute to SunCoke Energy's valuation in the near term.

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. We would highlight that revenue is expected to reverse, with a forecast 12% annualised decline to the end of 2024. That is a notable change from historical growth of 8.0% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 4.9% per year. It's pretty clear that SunCoke Energy's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, they also upgraded their revenue estimates, although our data indicates it is expected to perform worse than the wider industry. The consensus price target held steady at US$11.50, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on SunCoke Energy. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

Plus, you should also learn about the 5 warning signs we've spotted with SunCoke Energy (including 1 which makes us a bit uncomfortable) .

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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.