Analyst Estimates: Here's What Brokers Think Of Acushnet Holdings Corp. (NYSE:GOLF) After Its Yearly Report
Last week, you might have seen that Acushnet Holdings Corp. (NYSE:GOLF) released its annual result to the market. The early response was not positive, with shares down 5.7% to US$65.50 in the past week. Results were roughly in line with estimates, with revenues of US$2.4b and statutory earnings per share of US$2.94. This is an important time for investors, as they can track a company's performance in its report, look at what experts 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 the analysts have changed their mind on Acushnet Holdings after the latest results.
View our latest analysis for Acushnet Holdings
Taking into account the latest results, the most recent consensus for Acushnet Holdings from eight analysts is for revenues of US$2.47b in 2024. If met, it would imply a modest 3.7% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to increase 3.7% to US$3.24. Before this earnings report, the analysts had been forecasting revenues of US$2.46b and earnings per share (EPS) of US$3.12 in 2024. So the consensus seems to have become somewhat more optimistic on Acushnet Holdings' earnings potential following these results.
The consensus price target was unchanged at US$69.63, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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. There are some variant perceptions on Acushnet Holdings, with the most bullish analyst valuing it at US$86.00 and the most bearish at US$60.00 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's pretty clear that there is an expectation that Acushnet Holdings' revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 3.7% growth on an annualised basis. This is compared to a historical growth rate of 10% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 2.3% per year. Even after the forecast slowdown in growth, it seems obvious that Acushnet Holdings is also expected to grow faster than the wider industry.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Acushnet Holdings following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster 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 Acushnet Holdings analysts - going out to 2026, and you can see them free on our platform here.
We don't want to rain on the parade too much, but we did also find 2 warning signs for Acushnet Holdings that you need to be mindful of.
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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.
