Yahoo Finance BWX Technologies, Inc. Beat Analyst Estimates: See What The Consensus Is Forecasting For Next Year
A week ago, BWX Technologies, Inc. (NYSE:BWXT) came out with a strong set of quarterly numbers that could potentially lead to a re-rate of the stock. It was overall a positive result, with revenues beating expectations by 6.3% to hit US$520m. BWX Technologies reported statutory earnings per share (EPS) US$0.76, which was a notable 15% above what the analysts had forecast. 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 thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
See our latest analysis for BWX Technologies
Following the latest results, BWX Technologies' six analysts are now forecasting revenues of US$2.16b in 2021. This would be a reasonable 4.6% improvement in sales compared to the last 12 months. Per-share earnings are expected to accumulate 8.2% to US$3.11. Before this earnings report, the analysts had been forecasting revenues of US$2.17b and earnings per share (EPS) of US$3.11 in 2021. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
The analysts reconfirmed their price target of US$69.17, showing that the business is executing well and in line with expectations. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic BWX Technologies analyst has a price target of US$77.00 per share, while the most pessimistic values it at US$53.00. 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.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that BWX Technologies' revenue growth is expected to slow, with forecast 4.6% increase next year well below the historical 7.3%p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 5.6% next year. Factoring in the forecast slowdown in growth, it seems obvious that BWX Technologies 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 revenues will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple BWX Technologies analysts - going out to 2023, and you can see them free on our platform here.
However, before you get too enthused, we've discovered 2 warning signs for BWX Technologies that you should be aware of.
This article by Simply Wall St is general in nature. 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.
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