It's been a good week for MDU Resources Group, Inc. (NYSE:MDU) shareholders, because the company has just released its latest annual results, and the shares gained 6.4% to US$31.51. It was an okay report, and revenues came in at US$5.3b, approximately in line with analyst estimates leading up to the results announcement. Earnings are an important time for investors, as they can track a company's performance, look at what top 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 analysts' latest (statutory) post-earnings forecasts for next year.
After the latest results, the sole analyst covering MDU Resources Group are now predicting revenues of US$5.58b in 2020. If met, this would reflect a reasonable 4.5% improvement in sales compared to the last 12 months. Prior to the latest earnings, analysts were forecasting revenues of US$5.31b in 2020, and did not provide an EPS estimate. It looks like there's been a clear increase in sentiment after the latest results, given the small lift in revenue estimates.
There's been no real change to the consensus price target of US$32.00, with MDU Resources Groupseemingly executing in line with expectations.
Zooming out to look at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up both against past performance, and against industry growth estimates. Next year brings more of the same, according to analysts, with revenue forecast to grow 4.5%, in line with its 4.9% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 3.6% per year. So it's pretty clear that MDU Resources Group is forecast to grow substantially faster than its market.
The Bottom Line
The biggest takeaway for us from these new estimates is the bullish forecast for profits next year. Pleasantly, analysts also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider market. 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.
We have estimates for MDU Resources Group from one covering analyst, and you can see them free on our platform here.
You can also see whether MDU Resources Group is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.
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