Yahoo Finance Otter Tail Corporation Full-Year Results: Here's What Analysts Are Forecasting For Next Year
As you might know, Otter Tail Corporation (NASDAQ:OTTR) recently reported its yearly numbers. Otter Tail reported in line with analyst predictions, delivering revenues of US$920m and statutory earnings per share of US$2.17, suggesting the business is executing well and in line with its plan. This is an important time for investors, as they can track a company's performance in its report, look at what top analysts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether analysts have changed their mind on Otter Tail after the latest results.
View our latest analysis for Otter Tail
Taking into account the latest results, the most recent consensus for Otter Tail from three analysts is for revenues of US$973.2m in 2020, which is an okay 5.8% increase on its sales over the past 12 months. Statutory earnings per share are expected to accumulate 10.0% to US$2.41. In the lead-up to this report, analysts had been modelling revenues of US$973.2m and earnings per share (EPS) of US$2.41 in 2020. 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.
It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$54.25. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Otter Tail, with the most bullish analyst valuing it at US$60.00 and the most bearish at US$48.00 per share. Still, with such a tight range of estimates, it suggests analysts have a pretty good idea of what they think the company is worth.
It can be useful to take a broader overview by seeing how analyst forecasts compare, both to the Otter Tail's past performance and to peers in the same market. It's clear from the latest estimates that Otter Tail's rate of growth is expected to accelerate meaningfully, with forecast 5.8% revenue growth noticeably faster than its historical growth of 4.1%p.a. over the past five years. Compare this with other companies in the same market, which are forecast to grow their revenue 3.0% next year. It seems obvious that, while the growth outlook is brighter than the recent past, analysts also expect Otter Tail to grow faster than the wider market.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with analysts reconfirming that earnings per share are expected to continue performing in line with their prior expectations. Fortunately, analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - and our data does suggest that Otter Tail's revenues are 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.
Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Otter Tail analysts - going out to 2024, and you can see them free on our platform here.
It might also be worth considering whether Otter Tail's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.
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